The shortage of supply forces buyers to pay more

As the supply of new residential properties in the real estate market in the UK remains very low, in the market there is an acute shortage of residential property for sale. The competitive environment in the market has led to a situation where one in five customers is paying with the purchase price exceeding requested in order to obtain ownership of the property which came to his liking.

According to the report, the residential property market in the UK in may 2014, the number of incoming on the housing market has dropped 27% since last year. This means that buyers pay more – more than 19% of real estate sold more than the original price.

Below asking price sold 46% of the entire estate, which, in turn, the smallest figure since 2013, when about 71% of sellers agreed to a price lower than the asking.

The situation in the property market in the UK is that the number of buyers exceeds the number of properties on the market and competition for good real estate is growing every day. And the problem of a lack of available properties on the market will not be resolved quickly. The lack of real estate causing prices to rise, which, consequently, excludes from the market buyers with a small budget. Families with low income cannot afford to buy a property, even a mortgage for the reason that they can not afford the Stamp duty – Stamp duty (What is “Stamp duty”) which depends on the value of the property and is paid on a progressive scale.

Currently the situation with the supply of new housing started to improve. On the rumors about the introduction of higher interest rates by the Bank of England, many owners have put their property on the market , fearing that real estate prices will fall, while the rental yield may be reduced.

The report also noted that half of the house is the most popular type of property in the UK today. He was chosen by 37% of buyers. 29% of buyers choosing a detached house terrace choose – 10% of the buyers and apartments – a 18% interest. Almost half of buyers – 49% – want to increase the size of your living space. And 15% would like to reduce the area of their homes.

® Alice Morgan 23.06.2014,

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