The analysis from Rightmove reveals that, compared to last year, there has been an increase from 15% to 21% in the proportion of available properties up for sale on Rightmove that are chain-free.
The shift is most marked in London where the percentage of chain-free homes has jumped from 12% this time last year to 21% now. There is corresponding strong growth in rental demand of over 40% in the neighbouring regions of the South East and South West as some people choose to sell up and rent outside of the capital for now. There are also some landlords selling up in the capital due to falling rents.
Those who are selling up may also be taking advantage of securing the best price for their home while the stamp duty holiday is in place as an incentive for their buyers, and others who have chosen to move out of a city may be planning to rent first to make sure country life is definitely for them.
Those staying in London may also be looking to make use of the double-digit declines in rents in some areas until they find somewhere to buy.
The strongest sellers’ market in a decade means that currently almost two out of three properties on an agents’ books are sold subject to contract. There are signs however that new listings have been starting to improve over the past few weeks.
Tim Bannister, Rightmove’s Director of Property Data, explained: “We know that one of the reasons sellers are often hesitant to come to market is because they can’t find somewhere that they want to buy, but with record buyer demand and the stamp duty holiday being an added incentive for prospective buyers there seems to be a group of people who are choosing to sell up now and rent temporarily.
“The flexibility of renting gives people the chance to ‘try before you buy’ in a new area and so those who have chosen to move to the countryside may be selling their house chain-free to then rent and take time to decide if the good life is definitely for them.
“Selling chain-free is perhaps something some owners hadn’t considered as a possibility before now, but with the competitive market and stock shortage we currently have, they’re trying to put themselves in a more attractive position when their dream home comes along. In the capital, there are also some landlords who are selling up now, which could open up an opportunity for some first-time buyers looking for their first home.”
Guy Gittins, CEO of Chestertons, said: “Over the past year there has certainly been a marked increase in the number of people that are selling without an onward purchase through our London offices. One of the most common reasons is that the family house market is incredibly competitive in London and many sellers are willing to break the chain in order to become chain-free buyers and place themselves in the best position to secure a property when the right one comes up. With many people now working from home, these sorts of buyers have more flexibility in where they live in the short-term, and many are choosing to move back with family temporarily or even moving further out of London for the short-term.
“There are a number of other reasons as well, including a number of landlords selling their buy-to-let investments due to falling rents, second homeowners deciding to cash in on some of the additional value that has built up in their property, and sellers making their property more attractive to buyers who want to meet the stamp duty holiday deadline.”
