A November survey into the UK residential housing market has revealed that despite the uplift in enquiries, there has been a lack of new listings which is holding back market activity. The limited supply of housing is also keeping prices rising which show no signs of slowing down.
The lack of new listings has been frequently cited by many survey respondents, which is sustaining competition between house-buyers and continuing to push house prices higher.
+71% of survey participants reported an increase in prices which is identical to October’s reading. Going back even further shows that house price inflation has remained very consistent in gaining strength over the last four months.
All parts of the UK have continued to see house price growth according to disaggregating data. Wales, the Northwest of England and the West Midlands are all leading the way with particularly elevated price readings. House prices in London are somewhat behind the rest of the UK, the cause of which has been attributed to the latest virus concerns which has caused overseas buyers to delay any travel plans. However, a strong 2022 is expected.
The rental market also remains strong with tenant demand seeing another monthly increase in November with +48% of respondents citing a rise. According to -24% of survey participants, landlord instructions fell. Again, the discord between a fall in supply and a rise in demand is expected to push rental prices distinctly higher in the near term. Participants are predicting a 4% rise in rents at the national level over the course of the next 12 months with rental growth averaging 5% per annum over the next five years.
Click here to see the full Housing Market survey
Need a quote on a Structural Warranty? GET A QUOTE