123estateAgent has seen the properties coming to market is cooling down dramatically. Buyers registering are still very strong with many applicants finding it hard to find their dream home. This means house prices are still achieving good prices. Rents are also staying very strong with tenants out stripping properties to rent.
The total stock of property for sale in England and Wales has dropped again to a new record low of 266,369, 37.5% lower than in August 2020 and 45.3% less than in August 2018.
Monthly supply of new instructions also remains vastly below normal expectations across the UK (-38% compared to July 2020). The South West is worst hit by scarcity (-51%) while Greater London, until now plagued by oversupply, indicates a distinct drop in the number of new vendors (down 30% compared to July 2020).
Supported by scarcity, asking prices across England and Wales continue to rise overall as demand overwhelms supply, adding another 0.8% since last month, although the annualised average growth has slipped to 7.6%.
Typical Time on Market for unsold property in England and Wales has risen slightly by four days since last month to 77 days although this is the lowest August figure since 2007. The lack of new stock and market fatigue after a feverish period of buying likely explain the rise in this key metric rather than the tapering of the stamp duty holiday.
Fierce demand has again forced up prices in every English region (except the North East) and Wales since last month, with the largest hikes in Wales (+1.6%), the North West (+1.1%) and the West Midlands (+1.1%).
The East of England property market continues to lead the 12-month regional price growth chart with a stunning rise of 11.2%, followed closely by Wales (+10.7%).
Greater London remains the UK’s worst-performing region with 3.9% annualised growth although the trend is now upward and there are clear signals that the capital’s sales market will soon surpass the previous average high registered back in May 2016.
The sales market is now supported by rising rents in the Greater London lettings market. Annualised growth in asking rents has now firmly moved into positive territory following the COVID exodus (+3.9%). The greatest rises in asking rents over the last six months are in the City (+47.8%), Wandsworth (+22.9%), Hackney (+19.5%) and Islington (+15.5%), indicating that the wealthy are returning to city living.
Scarcity of rental properties persists in all English regions, Scotland and Wales, further supporting record rents outside of London. Rents are up 3.7% across the UK since August 2020.
The largest annualised average rent hikes remain in the East of England (+10.1%)and the West Midlands (+11.7%).