Mortgages  

UK housing demand still outpacing supply

UK housing demand still outpacing supply
 

The demand for housing in Britain is not being met with supply, causing rampant house price inflation and an average listing price of £308,698 for a property.

There are more than 378,000 houses listed in Britain this month (August), with an estimated total value of almost £117bn, according to research by GetAgent.co.uk.

The research also pointed to the availability and affordability of housing in certain postcodes.

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For example, people living in London postcodes have seen some of greatest availability, with Waltham Forest and Croydon topping the list of the highest number of houses for sale, at 1704 and 1682 listings respectively.

However, these postcodes are among those with the highest current market value, suggesting that some postcodes with more available housing are less affordable and that buyers may struggle to find available housing in affordable locations.

More affordable locations can be found outside of London, with postcodes in Chelmsford and Central Bedfordshire having high availability but not appearing on the list of highest current market value.

However, with properties in these postcodes averaging a listing price of £451,128 and £388,219 respectively, these highly available properties still cost more than the national average, the research found.

Chief executive and co-founder of GetAgent.co.uk Colby Short commented: “The housing market is yet to show any signs of running low on steam, and it seems as though every week there are reports of property values reaching new record highs.

“This house price performance is being driven by a sustained level of market activity from the nation’s homebuyers and this demand, coupled with a lack of stock, is the driving factor behind house price inflation.”

Limited housing stock

He said this market value inflation, caused by an imbalance of supply and demand was set to make taking that first step onto the property ladder increasingly difficult.

As reported by FTAdviser, house price growth is outpacing earnings.

At the time, Nationwide's chief economist Robert Gardner said: “Demand continues to be supported by strong labour market conditions, where the unemployment rate remains near 50-year lows and with the number of job vacancies close to record highs.

"At the same time, the limited stock of homes on the market has helped keep upward pressure on house prices."

Earlier this year, FTAdviser reported the average home is England now being sold for 8.7 times the average annual disposable income

With many households across Britain struggling with rising inflation and the cost of living crisis, Get Agent has warned that prospective buyers may struggle to find housing in postcodes with both available and affordable housing.

Lucy Evans is interning with FTAdviser