Shortage of properties coming to market in South West

The South West is experiencing a significant shortage of homes coming onto the market, according to new data.

The figures from Quick Move Now and Home.co.uk show that the number of properties newly listed for sale in April 2021 was 29 percent lower than April 2019 levels, and 28 percent lower than in April 2016.  Every region except Greater London is experiencing a significant reduction in the number of properties coming to the market, but the South West of England has seen the greatest drop from 2019 levels. This reduction in properties coming to the market comes at a time when demand for property in the region is on the rise.

Nationally, the number of new properties on the market in April 2021 was 16 percent lower than two years ago, and 28 percent lower than five years ago.

Danny Luke, Quick Move Now’s managing director, explained: “A shortage of properties coming onto the market has been a big challenge over the last year. The fewer properties coming to market, the more price growth we’re going to see. This is especially true in high-demand areas such as Devon and Cornwall.

“Nationally, Nationwide’s House Price Index suggests that house prices increased by 7.3 percent in 2020.  Over the same period, Exeter saw property prices growth at nearly twice that rate, with a 14 percent increase. The level of growth we’re seeing at the moment, brought about by high demand and low supply, is unnaturally high and, I would argue, simply not sustainable.

“Many movers have been motivated by the government’s stamp duty holiday. Increased home-working options are also a factor as they are giving employees the opportunity to choose their home’s location based on desirability rather than necessity. As the stamp duty holiday comes to an end, we can expect to see demand slow a little. However, with the South West remaining a highly desirable region, it may be sometime before we see the imbalance between supply and demand level out.”

“If you’re looking for a new property in the current market, your best bet is to make yourself as ready to proceed as possible. Ensure your finances are in order and you have a mortgage in principle. It’s also worth considering that if you’re able to make yourself a chain-free buyer it will make you more desirable to sellers.

Number of properties coming to market – regional comparison 

East of England

8,576 (April 2021)

11,352 (April 2019)

10,265 (April 2016)

 

East Midlands

5,763 (April 2021)

7,399 (April 2019)

8,227 (April 2016)

 

Greater London

13,204 (April 2021)

9,783 (April 2019)

13,832 (April 2016)

 

North East

2,961 (April 2021)

3,843 (April 2019)

4,676 (April 2016)

 

North West

8,169 (April 2021)

10,599 (April 2019)

12,896 (April 2016)

 

Scotland

4,254 (April 2021)

5,132 (April 2019)

6,900 (April 2016)

 

South East                    

12,655 (April 2021)

16,118 (April 2019)

16,427 (April 2016)

 

South West

7,057 (April 2021)

9,948 (April 2019)

11,350 (April 2016)

 

Wales                            

3,091 (April 2021)

4,002 (April 2019)

5,763 (April 2016)

 

West Midlands

6,301 (April 2021)

7,376 (April 2019)

8,410 (April 2016)

 

Yorkshire and The Humber

5,455 (April 2021)

6,787 (April 2019)

8,690 (April 2016)

 

Whole of UK

79,426 (April 2021)

94,294 (April 2019)

110,031 (April 2016)