Warnings of 'acute shortage of supply' in housing market
15 JUNE 2015
The number of homes for sale has fallen to its lowest level since records began in 1978, with the Royal Institution of Chartered Surveyors (Rics) warning of an ‘acute shortage of supply’.
It has been surprising that the housing market hasn’t taken more confidence from the election result with the predicted bounce just not happening.
Much of the reluctance to sell is down to transactional costs. With the cost of moving so high, many homeowners are preferring to stay put and improve what they have got, rather than go through the stress, hassle and cost of moving.
The sales market at the upper end is still digesting the changes in stamp duty at the end of last year, as everyone was distracted by the possibility of a mansion tax. It is now dawning on sellers that buyers can’t stomach higher transaction costs of 10 to 15 per cent of the purchase price, with about £1m in costs on a £10m purchase.
The problem is that if you do sell, where are you going to buy? With not much stock on the market, there is little choice and many chains are falling through as a result.
It is a real challenge trying to find someone who is prepared to sell at the right price, which is where a buying agent can come in very handy indeed.