Latest housing market-trends survey says lack of supply is a ‘clear opportunity’ to the building industry
The latest Hometrack housing market trends survey has reported a marked improvement in market conditions, with the strongest level of demand seen since the start of the downturn.
Its February analysis said the number of home buyers registering with agents had grown by 18% over the month, while the stock of housing for sale had grown by only 10%.
Hometrack’s monthly national survey results found overall pricing conditions remained unchanged for the second month running, but that scarcity of supply in the market was exacerbated due to the number first-time buyers and investors entering the market with no current property to sell on.
Director of research Richard Donnell said February registrations were higher than the same month in 2009 and that the market was ripe for housebuilders.
“Over the last six months there has been only a small increase in the supply of housing for sale and this scarcity continues to act as a support to pricing,” he said.
“While the Hometrack survey only measures trends across the re-sale market, the lack of supply is presenting a clear opportunity to the house building industry as they deliver much needed stock into the wider market.”
Hometrack said the 10% month-on-month rise in supply reduced to a 1.5% increase over the past six months.