A recent survey of estate agencies has revealed that there are now approximately four potential buyers for every home that is currently for sale in the United Kingdom.
The recent study has unveiled that while the average number of potential buyers registered with estate agencies has risen to 299 in May (from 265 in April), the average number of properties that are listed for sale has dropped from 76 in April to 69 in May. This means that for each property that is currently available in the UK there are four house hunters searching. The National Association of Estate Agents (NAEA) president, Gary Smith, has stated that “With mortgage interest rates at historically low levels and prices now far more realistic than in previous years, home ownership in the UK seems to be set to lead the way out of the recession.” This accounts for the rise in demand for properties, but the substantially lowered house prices (which, on average, still sell for 6.3% bellow asking price) means that current home owners are reluctant to sell.
This discrepancy means that roughly 75% of house hunters are failing to find properties. A lot of these people are looking towards rental properties until the economy begins to take more positive turns and the property market begins to stabilise. At times hunting for a rental property can be just as difficult as looking for a home to buy; there is a lot that needs to be considered. There has been a recent boom in the number of rental properties available as home owners opt to rent out their properties rather than sell them in the current climate. This has resulted in a number of inexperienced landlords renting out properties, which could cause issues should problems arise during the tenancy.
In order to avoid this it can be a great idea to rent property through an agency, as reputable agencies will ensure that they only work with quality landlords and properties. I had struggled on my recent search for
flats to rent in Glasgow, or
property to rent in Edinburgh until I approached an experienced agency.
In conclusion, there are signs that the property market could be taking baby steps towards a recovery however at the moment there are still a lot more potential buyers then sellers. Until the market stabilises renting a property can be an excellent stop gap.
