In Britain there is “simply not enough housing to meet demand”, a reality that continues to underpin the strength of the country’s property sector.
- 11 property hunters in the UK currently battle for just one unit available on the market
- There was a 10% rise in the number of prospective buyers registered at UK estate agents in January – in the same month that available property numbers fell to a six-month low
- With a rush for safe haven assets amid global economic and political uncertainties, this imbalance underpins the strength of a UK property investment
It’s widely reported that the UK is in the midst of a property shortage – and new research from the National Association of Estate Agents (NAEA) underlines the extent of this undersupply.
Around 11 buyers currently battle for one property listed on the country’s property market. The NAEA found in January that the average number of potential buyers registered at each estate agent branch rose to 424, 10% higher than December’s figure.
But in the same month, the number of available properties dropped to its lowest level since July 2016.
This resulted in one in every 20 properties in the first month of the year being sold for more than their original asking prices.
“The increase in the number of properties selling for more than asking price in January could be a result of heightened interest and the fact there is simply not enough housing to meet demand,” commented Mark Hayward, Chief Executive of NAEA Propertymark.
It highlights the strength of UK property investment. Over the next few months, events such as the French general election and Theresa May’s triggering of Article 50, marking the start of Brexit negotiations, have the potential to rock equities and financial markets.
As more global investors begin to considering adding safe haven assets to portfolios, this significant supply to demand imbalance will continue to drive returns for Britain’s property investors.