The number of homes for sale has recently seen a sharp increase, according to the credit checking agency Experian. It says that the total number of homes that were put up for sale in the last three months of 2014, rose to 187,905, which is a 27% increase on the 147,852 seen in the same period of the previous year. The phenomenon is being attributed to home owners trying to cash in on rising house prices. However, with the number of potential buyers failing to post a corresponding rise, those currently hunting from a home may be able to benefit from a ‘buyers’ market’.
The steepest increases over the last year were seen in at the luxury end of the market, with a rise of 57% on the numbers of homes for sale at more than £500,000. Meanwhile, homes for sale between £250,000 and £500,000 grew 38% in volume. It is worth remembering, however, that more homes have been increasingly pushed into these categories over the last twelve months, as prices have risen. The rise recorded by Experian was taken from the National Property Database, which is compiled by estate agents, surveyors and the Land Registry.
Whilst house prices are clearly rising – the Office of National Statistics say that 2014 had seen the second highest annual rise in prices since 1980 – the number of potential buyers is falling. Experian said that, on average, 37% of families could not afford to buy a home in their area. This figure stands at 54% in London, 48% in the south west and 47% in the south east. The credit reference agencies derived these figures by deriving an average price from the cheapest 10% of properties in the area and comparing this to the average local wage multiplied by three – a common mortgage variable.
Sources: thisismoney.co.uk (image courtesy of telegraph.co.uk)