Stock squeeze hindering buyers’ house hunts
Nine in ten buyers have said a lack of houses on the market is hampering their property hunt.
Buyers searching at the top end of the market have felt the impact of the stock crunch the most. Some 94 per cent of buyers with a budget of £1m and above reporting a lack of choice, according to a survey from Savills.
Although there is a stock squeeze, demand is robust, with 48 per cent of all buyers reportedly considering a move for more than a year. Half said they hoped to complete within the next six months.
Frances Clacy, research analyst at Savills, said: “This shortage of stock has left would-be sellers in a difficult situation as many have been reluctant to bring their home onto the market when they’re yet to find another to move into, making it an opportune time for would-be vendors to list their home.
“The imbalance of supply and demand, coupled with existing high levels of property wealth, will continue to fuel price growth in the coming months, despite the recent rate rises.
“However, some cohorts are feeling the squeeze on finances more than others as high levels of price growth has eroded affordability in some areas, particularly in high-value locations.”
Savills forecast that a ‘race for space’ will continue to be at the heart of buyers’ demands, with individuals lusting after homes near greenery.
In the capital, buyers are continuing to prioritise open space over proximity to train and tube stations.
With a rush back to offices, the number of buyers who are prioritising being near to their workplace has risen from 15 per cent in September 2021 to 23 per cent in February 2022.
Clacy added: “What started as a lockdown trend has now firmly solidified itself as a key component of the prime UK regional market. Almost two years on, buyers are still prioritising lifestyle choices and proximity to leisure facilities, over school and work, with no sign of this reversing any time soon.
“But in London, it’s a slightly different picture, as buyers start to give greater consideration to where they live in proximity to their workplace. Return to normal for Londoners and would-be Londoners was stalled by the resurgence of the pandemic over Christmas, but with all restrictions now dropped, we can expect to see demand for best in class flats and pieds-a-terre return in cities.”
Just over three quarters of respondents said recent interest rate rises had no impact on their budget.
Some 26 per cent of upsizers said they were feeling a budget squeeze while 28 per cent of those looking to purchase in London said they had a smaller budget.
“Realistic pricing will become more important as the market starts to feel the knock-on effect of the overall increase to the cost of living,” Clacy added.