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Housing Market: supply shortage for fifth month in a row

Another market snapshot has identified low supply as the chief characteristic of the sales landscape this autumn.

Landmark Information Group’s latest Property Trends Report has identified a fifth consecutive month of low property supply levels, with new listings reporting lower numbers than pre-pandemic figures in 2019.

The report, covering England and Wales for the past three months, shows that listings were down by an average of nine per cent compared to 2019 data, while demand continued to outpace supply, maintaining a sustained imbalance in the market. 

Completions peaked at 44 per cent up in September this year (ahead of the stamp duty holiday end) versus September 2019, although the previous two months both recorded fewer completions compared to the prior two years. 

LIG says: “This has been a rollercoaster period for property lawyers and conveyancers as they navigated the various SDLT holiday deadlines and consequential activity peaks.”

Simon Brown, chief executive of Landmark Information Group, says: “The property industry has shown great resilience over the last 18 months as it has had to traverse so many challenges – from the market closure amid the height of the Covid lockdowns, to surges in market activity driven by the Government’s stimulus activities, all the while managing home-working, furlough and unpredictable market conditions.

“As much of the property industry breathes a sigh of relief following the various surges in market activity ahead of the stamp duty deadlines, many aspects of the market are starting to present more stable figures, including SSTC, legal search order-volumes and mortgage valuations. 

We are however seeing the demand for properties continuing to exceed supply. This market imbalance has the potential to lead to depressed sales, placing increasing pressure on property prices, as sellers are able to command higher asking prices. We look to see if this adjusts as we head towards the pre-Christmas sales period.”

Source: Estate Agent Today

19th October 2021

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