Lack of stock affecting market

Nine in 10 househunters are finding a shortage of houses available to buy, reports Vicky Shaw

Nine in 10 (90%) people looking to buy a home believe a lack of available housing is negatively affecting their ability to make a purchase, according to a property group.

Nearly two-thirds (65%) of potential buyers said the lack of available homes is having a severe effect, Savills found.

Stock shortages appear to be particularly acutely felt at the top end of the market, with 94% of buyers with a budget of £1 million or more reporting a lack of choice.

Savills surveyed buyers and sellers registered with it between February 9 and 15 to make the findings.

A separate report from Rightmove on Monday found that the average price tag on a home across Britain has rocketed by nearly £8,000 month on month.

The £7,785 jump in February is the biggest month-on-month increase in cash terms recorded by Rightmove in more than 20 years of its reporting.

It means the average asking price across Britain now stands at a record £348,804.

Rightmove said high demand and a shortage of available stock are supporting a rise in prices and the new record average asking price this month.

Nearly half (48%) of potential buyers surveyed by Savills have been considering a move for more than a year, with half (50%) hoping to complete within the next six months.

Frances Clacy, research analyst at Savills said: “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 (Bank of England) 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.

“Those who are planning to upsize and purchase in London both say they now have a smaller budget as a result of rising rates.

“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.”

Savills also said its research indicates buyers are prioritising being close to parks and open spaces, shops and local amenities over school and work.

However, the proportion of buyers who are prioritising being near to work has risen from 15% in September 2021 to 23% in February 2022.

The same proportion (23%) want to be close to a pub or restaurant, up from 12% in September.

Ms Clacy continued: “Almost two years on (from the start of the coronavirus lockdowns), 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.”