New instructions in the Capital have decreased by 1% month on month, rising just 17% annually: less than a third of the rate of demand. Property instructions for the UK in general have dropped by 2% on month, growing just 4% annually: six times slower than annual buyer registrations. Registrations across the country as a whole have risen by 4% on month and 24% annually, even before the introduction of the fast-tracked second stage of Help to Buy.
First time buyers have flooded into the market, with applications up 46% annually and 4% on month.
David Plumtree, Chief Executive at Sequence, owners of 300 branches, including Barnard Marcus, William H Brown and Fox & Sons, comments:
“We have been deluged by new buyer activity in the last month proving that the aspiration for home ownership across the UK, and in London in particular, is very much alive and growing. As a result there are almost 12 buyers for every property in London and six buyers for every property across the UK.
“This growing competition for property is now impacting on house prices, which have grown by an average of 7% annually in the UK and 6% in London. Demand is set to escalate yet further following the Government’s fast-tracked introduction of Help to Buy to the pre-owned market, so competition for property is only going to increase, fanning the flames for frustrated buyers.
“However, second and third steppers across the country should now be encouraged to put their property on the market, incentivised by rising prices, a ready pool of buyers and now also the chance to access a 95% mortgage themselves. This will increase the supply of property in the short term and create a more balanced market across the UK.”
