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Properties selling over asking price reach record high as supply plummets

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Written by: Shekina Tuahene
25/05/2021
There are a potential 16 buyers for every available property on the market right now
Properties selling over asking price reach record high as supply plummets

A record one in three properties sold for higher than their asking price in April as supply fell to its lowest level since 2002, figures from NAEA Propertymark showed.

There were just 27 properties per estate agent branch, down from 31 in March. According to Propertymark, this was near the low seen in December 2002 when there were just 25 available properties per branch.

For each estate agent branch registered with the association, there was an average of 427 house hunters, up from 409 in March.

This meant there were 16 potential buyers for each available property.

It was also the highest figure for April since 2004, when there were 487 prospective buyers per branch.

The number of sales agreed stayed flat compared to March at 12 per estate agent branch. Again, this was the highest level for April since 2007 when there were 13 sales agreed per branch.

First-time buyers accounted for 27 per cent of sales during the month, which was no change from March.

Mark Hayward, chief policy adviser at Propertymark, said: “It is phenomenal to see demand for housing breaking records, as house buyers continue to fuel the post-Covid economy.

“However, the continued imbalance of supply and demand is a concern and has led to a strong sellers’ market with properties being snapped up quickly at high prices.”

Rebalanced market

Hayward added: “We look forward to the much-needed rebalancing of the market, and we hope the Planning Bill outlined in the Queen’s Speech encourages the development of more housing, particularly in more affordable areas, as most of the development taking place is in areas that are unaffordable to first-time and lower income buyers, although the government’s First Homes initiative will be a much-needed boost.”

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