Year-on-year house prices have increased by 12.6% or £29,162, according to Nationwide’s latest house price index, with buyers across the UK now expecting to pay £260,000 for a home, after a 1.7% month-on-month increase in average cost.
TwentyEA says the Homemover Pulse – March 2022 report, published by its parent company, TwentyCi, can help agents gain an in-depth understanding of the current market activity at a national and not just local level – and use this knowledge to improve and grow their business.
Driving factors behind affordability issue
The report claims that a lack of housing stock and inflation continues to hinder the prospects of those trying to purchase homes, while interest rates are quickly rising and have caused mortgage rates to become increasingly unaffordable for many.
The Russian invasion of Ukraine not only compromises the luxury property market in London but as Russia and Ukraine account for a large number of oil exports, it is one of the factors behind the cost-of-living rise in the UK.
Katy Billany, Executive Director at TwentyEA, further explains: “The lack of supply coupled with unaffordability is causing these current market conditions. A desire for more living space at the height of the pandemic caused demand to increase. Although the lack of supply is becoming a persistent issue in 2022.”
She added: “The driving factors behind the current unaffordability issue in the UK housing market has a direct effect on agents. The competition among buyers puts a vast amount of pressure on estate agents as large numbers of people are interested in very few homes. The worst-case scenario could result in estate agents running out of stock and so it’s important that agents are focusing their marketing efforts on those individuals who are most likely to instruct. It’s the only way to ensure that they benefit from the unprecedented levels of demand when stock is so low.”
UK regions highest in demand
By analysing key stages of the home buying journey in the UK regions, the property data and analytics company was able to accumulate valuable data for agents who are navigating their way through the current market conditions. It’s beneficial for agents to see the National picture, as often it can be easy to focus so hard on local activity that they become blinkered to what is going on in other areas of the country.
The statistics published by TwentyCi show that currently, there are 172,589 residential properties available for sale and 237,512 properties with sales agreed across the country. There has also been a total of 290,381 completions in the last three months.
Katy explains: “The highest volume of property market activity is happening across the South East, meaning agents across this part of the UK are experiencing the most work and competition among prospective buyers.”
“In the last three months alone there have been more than 52,000 completions. In addition to this, over 70,000 households have instructed or have sales agreed, proving the vast majority are well into their sales journey. Overall, our findings show soon to be home movers equate to 3.3% of households in this popular region.”
“Currently, there are 172,589 properties listed for sale across the UK. Agents who are aware of how activity varies across UK regions can use this data to their advantage. Maintaining a view of trends at a national level is important for all agents if they are to be viewed by their clients as true market experts.”
Katy suggests that the findings show that, across Inner London, new instructions outweigh the number of current sales agreed and completions in the last three months, with over twice the number of properties currently for sale than there are properties with sales agreed in this part of the capital.
Katy explains: “House prices across this region are usually some of the more expensive, and this could make them unattainable for those in this region.
“On the opposite side of the spectrum, with 0.33% of properties available for sale, Scotland is the region with lowest property market activity.”
She concludes: “The level of activity is far greater across some regions compared to others, yet a chronic lack of supply and huge levels of demand is visible across the UK.”
“Agents who take the time to observe these differences, such as those between London and Scotland, will have a better time navigating their business during these uncertain times.”
