Why a shortage of homes for sale is hitting housing market

DEMAND continues to outstrip supply in the West Yorkshire housing market, says a report.

The latest survey by the Royal Institution of Chartered Surveyors (RICS) said the number of homes on estate agents’ books had hit a record low while sales activity was “losing momentum” and did not look likely to pick up “any time soon’’.

Alex McNeil, of Bramleys in Huddersfield, said: “We saw a flurry of pre-holiday completions which demonstrates that confidence remains within the sales market, but it still continues to be held back by a dearth in supply.”

The RICS said price growth and sales activity across the Yorkshire housing market was subdued during July.

Only 16% of chartered surveyors in the region saw house prices rise, while the number of homes on agents’ books fell to a new all-time low. Agents reported an average of 46 homes on their books during July – against an average of 77 homes in July, 2014. Demand from potential buyers rose moderately during July with 12% of respondents reporting a rise in buyer enquires against just 4% in June.

The main factor holding back the market continued to be a “sustained deterioration” in the flow of fresh listings, with new instructions to sell dwindling for the 17th consecutive month.

In the lettings market, 16% of respondents reported an increase in rental demand, but landlord instructions continued to fall.