You may be surprised to learn that estate agencies have 69 per cent fewer properties on their books than a decade ago. Why are there less available properties, and how will this affect the market? Read on to find out.
A National Association of Estate Agents (NAEA) study reveals how the property market has decreased. In May 2008, there were 97 homes for sale per branch on average. May 2018 had just 37 homes per branch, a slight decrease from the average 40 homes in May 2017.
Why have property number decreased?
One of the main reasons is that people are choosing to stay in their current home longer than before. This is often due to house prices, the cost of living, and stamp duty.
May is not one of the most popular months to put a house on the market because people want to enjoy their summer without moving; however, the market is quieter during the summer, so it can be a good time to sell your home.
One benefit for sellers is that estate agents have fewer properties to deal with, so can dedicate themselves to selling your home. If you are looking for estate agents Bath, check out companies such as https://www.pritchards-bath.co.uk/.
Due to the new tax laws, buy-to-let landlords have deserted the market, which has left a large gap. The Council of Mortgage Lenders reported that buy-to-let lending has dropped by 44 per cent in the last year.
Due to the costs associated with purchasing a home and moving, there are more people renting. This gives you flexibility and you don’t have any mortgage payments; however, buying a home and paying off a mortgage is an investment. You don’t get your rental money back; however, paying off a mortgage means you will save money moving in the future.
With people struggling to balance work and home life, moving can be too stressful for many and they might want to wait until their children are older. They might enjoy living in their current property and have no reason to leave.
While the market may struggle, it is unlikely that it will decrease to a severe level. Moving for work and growing families mean there will always be a demand for properties.