Elements such as the stamp duty holiday, change in lifestyle for millions and pent-up demand following last year’s lockdown closures have all brought an unprecedented wave of purchasers to the property market. But some areas are much more difficult to buy in than others as the market imbalance deepens.
Newmarket in Suffolk has been revealed as the current centre of the supply shortage.
Agreed sales in Newmarket, which is some 60 miles north of London, this July surged 79 percent compared to the same period in 2020.
Meanwhile, the number of new sellers putting their homes up for sale fell by 49 percent.
Sellers have taken advantage of the supply gap and have hiked local asking prices by an incredible nine percent since July 2019.
He continued: “Housing usually has a 12-month grace period for construction to proceed. If projects didn’t progress last year as planned, homes won’t be delivered this year.
“Taking buyers into account, people have opted to extend their time in their current residence, avoiding moving house during the peak of the pandemic.
“As a result, this means less property uptake on the market.”
Adding to the upheaval in the market, Mr Priestley said there is “a substantial amount of available cash and credit in the market.”
The property expert explained: “Lending is becoming cheaper and much more accessible, meaning more buyers are entering the fray.
“When you combine all the above factors with the lack of supply and increased demand, alongside basic economics – prices will increase.”