Halifax has reported the number of properties available for sale on the market has reached its lowest level for many years…
There is no denying the UK is in the middle of a housing shortage. For some time now demand has been outstripping supply. Over the last five years the coalition government worked to increase the number of properties available by stimulating new builds and by opening up brownfield land to developers.
The shortage of homes for sale has pushed house prices increasingly higher, and in many cases out of the reach of some people. Figures from the Halifax showed just how much the shortage of homes on the market has impacted house prices, as this rose by 8.6 per cent over the year to the end of May. This pushed the price of the average property up to £196,067. However, prices did see a slight dip of 0.1 per cent in May compared to April.
Housing Economist at the Halifax Martin Ellis said: “The imbalance between supply and demand is likely to continue to push up house prices over the coming months.
“Looking further ahead, the increasing level of house prices in relation to earnings is expected to dampen house price growth.”
Jonathan Samuels, chief executive of Dragonfly Property Finance, said: “Unless supply improves materially, it is hard to see how prices will not continue to rise throughout 2015, albeit at a more moderate pace relative to last year.”
Rival firm the Nationwide also reported earlier this week that 38 per cent of properties were sold to cash buyers. The company also said a “gradual downward trend” in annual price growth had resumed. This started last summer.
