51% fall in UK property supply since 2008

51% fall in UK property supply since 2008

“Growth of private rented sector” contributing to rapid decline in available stock as investors continue to achieve strong capital gains.

Summary:

  • The number of new properties available to buy in the UK has fallen by 51% over the last eight years
  • Scarcity of stock saw prices rise in every region of the country last month
  • “Growth of the private rented sector” and the slowdown in property transactions cited as one of the reasons fewer properties are now available

UK property supply is now at a significantly low level.

The number of properties for sale in England and Wales has fallen by 51% since 2008, with 440,547 fewer properties available in April 2016 than there were in the same month eight years ago, according to new data from Home.co.uk.

Since 2010 there’s been a 26% decline in stock, while the fall over the last 12 months alone stands at 12%.

Furthermore, a Home.co.uk index looking at the number of new properties that come onto the market each month shows just a modest rise of 4% in April 2016 compared to one year previous. But this still represents a 43% shortfall when compared with the monthly listing figures of April 2008.

The lack of supply is driving price growth and capital gains for Britain’s property investors. Average asking prices over the last two months have risen by 0.8%, while every region in the UK saw values rise in May.

Last week it was reported that supply of property in Manchester alone has fallen by 70% over the last eight years, with two bedroom properties experiencing the fastest decline in availability.

Doug Shephard, Director at Home.co.uk, cites the growing preference among British workers to rent their property for dwindling real estate numbers in the marketplace.

This demand for rented accommodation is also growing monthly investor returns as well as long-term capital appreciation. Yields in Manchester, the UK hotspot for monthly returns, are currently as high as 8%.

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