The property portal analysed the number of people sending enquiries to estate agents about each available property and found that as the spring selling season gathers momentum, there is the biggest mismatch between supply and demand for this time of year ever measured by Rightmove, with more than twice as many buyers as sellers.
According to the findings, Jesmond, a suburb of Newcastle-Upon-Tyne, is second on the list of hotspots (+141%) and Chorlton Cum Hardy in Greater Manchester is third (+138%).
Asking prices have increased by an average of 11% in the hotspots compared to this time last year, as greater competition has supported price growth, however price movements in each area vary due to differing supply and demand dynamics since the pandemic started.
In London, Balham is the competition hotspot, with competition between buyers increasing by 113%. Upminster is second on the list of London hotspots (+108%) and Chessington is third (+106%).
Tim Bannister, Rightmove’s Director of Property Data, comments: “Over the last year, supply and demand imbalance has led to greater competition between buyers in many areas of Great Britain. The data highlights that as pandemic restrictions have been lifted, competition has increased most in areas just outside Birmingham, Newcastle and Manchester, as more people look to be closer to cities either for work or for their lifestyle.
"As some areas have experienced more sustained imbalance of supply and demand than others, the impact on asking price change to date varies. At the moment, we’re seeing more than twice as many buyers as sellers in the market – which is good news if you’re looking to sell, as you’re likely to be met with multiple potential buyers for your home to choose from.
"For those looking to buy and navigate the current fast-moving and competitive market, agents report that ‘power buyers’ - those who have already found a buyer for their current property, subject to contract - are more likely to succeed in securing the property they really want.”
Jamie Smart, Director at Smart Homes in Shirley, said: “Over the last year, we’ve seen a huge amount of people determined to move, which has made for a really resilient market. Some of the indicators would suggest that the housing market should be tougher than what we are experiencing, however, we are still seeing really high demand and competition for homes.
"The high number of outstanding schools in Shirley is a key reason people want to move here and is contributing to the increased competition for available properties. Overall, the buyer demand is more than the stock available. Whilst the stamp duty holiday was greatly received, we do get the impression that some buyers who had planned to move in 2022, moved their plans forward to take advantage of the stamp duty holiday last year. This means a percentage of the organic level of homes that would’ve come to market have already been sold.”
Greg McCarthy, valuer at Sanderson Young in Newcastle, said: “Competition for completion is fierce. We enter the spring selling season with a huge divide between supply and demand for this time of year, with more than twice as many buyers as sellers.
"As one of the most desirable areas in the North East, Jesmond has, as expected, seen huge demand, as this area is made up of exceptional prime property, often within conservation areas and offering outside space. With the after-effects of the pandemic, the ‘race for space’ is still evident in this particular marketplace. Jesmond also has fantastic transport links, easy access to amenities and excellent schooling and these are hugely important factors for our clients. Sellers in this area remain in pole position, firstly, because of the potential to achieve a record price for their property.
"Secondly, the imbalance between high buyer demand for this area compared to low available property supply, meaning that the chance of being able to pick and choose between several suitable buyers is high. We are however beginning to see incremental increases in the number of Jesmond homes coming to the market as we enter spring and we hope this will continue, to help feed buyer demand.”
