Supply and demand gap continues to widen

Hamptons International has revealed the supply versus demand in the UK housing market is continuing to grow.

Hamptons International revealed that there is an average of eight buyers for every seller in the UK housing market, with the organisation registering a 67 per cent increase in the number of offers made on properties.

The research also indicated a 38 per cent increase in registered buyers, compared to Q1 2006, with available housing stock falling by 50 per cent during the same time.

Hamptons’ study into February activity revealed a 72 per cent increase in viewings from January and a 30 per cent rise in market appraisals, which Hamptons said showed the continued buoyancy of the UK market.

However, with the introduction of Home Information Packs (HIPs) set for 1 June, Julian de La Poer Beresford, director, South East at Hamptons International, expected the housing market to go through a period of consolidation in 2007, helping borrowers to step onto the property ladder, or move house. He said: “Given the uncertainty over the launch of HIPs on 1 June, the momentum in the market will slow over the next 12 months, with house price growth settling around 7 per cent for 2007.”

Mike Pendergast, IFA at Zen Financial Services, said: “There is an under-supply of houses in the UK market. A combination of under-supply and a rise in the popularity of buy-to-let and property investment has increased demand, while price increases have had the opposite affect.”