Property sales slowing due to lack of new builds
With a reduction in new homes being built, house prices are shooting up – and as older generations lose interest in downsizing, first-time buyers are finding themselves unable to afford a home.
Despite previous government efforts to increase the number of new homes being built across the country, the scheme is still falling way behind thanks to a lack of investment. As a result, the average price of a home is steadily increasing.
While this news initially sounds great for homeowners, the increase itself is bad news for those who are looking to sell their home fast as those who were previously looking to buy are holding back to see whether or not this trend will continue or not.
Combined with the fear over falling house prices caused by the Brexit vote (which has since apparently proven unnecessary), property selling experts believe the sheer number of factors influencing the housing market has affected consumer confidence and left it in an unstable condition.
It is therefore understandable why those looking to get a foot on the property ladder are suppressing their urge to spend in order to avoid the possibility of entering negative equity.
The new data, released by the HMRC tax office, shows that sales in September have dropped over 11% versus the same period last year, while also falling 4.3% month on month.
“While the demand for homes continues to grow and interest rates are at a record low, the lack of properties available is reducing sales and driving up house prices,” said Nick Davies, head of residential development at Stirling Ackroyd.
Certain lenders have been lowering their mortgage rates to tempt in new buyers, thanks to interest rate cuts by the Bank of England, but potential homeowners are still finding themselves priced out of the market as the available selection is out of their price range.
So, what opportunities are there for vendors who need to sell their homes fast? While there are more and more estate agents entering the market, current data shows that the traditional route of selling a house is leading to a lengthy wait before a buyer is found. Alternatively, the seller can opt for using a property buying company, which will happily buy any house for cash directly, regardless of location or condition.
Can’t sell? Why not ask National Homebuyers for advice, as we buy any house. Call 08000 443 911 or request a call back to find out how much you could get for your property.