Selling Shortage

For the majority of the UK housing market, supply side constraints are moderating the impact of a decline in demand.  Aside from the long standing imbalance between development and new demand, there are simply fewer homes being put on the market, as those without the need to sell play a waiting game. According to data from the RICS, new buyer enquiries in September increased for the first time since February, but the number of instructions to sell continues to fall (for the seventh consecutive month).  Meanwhile, buy-to-let mortgages for the year are up, but this is most likely attributable to a surge in activity before the stamp duty changes last April. Therefore, future performance is likely to be considerably muted, unless the UK follows Ireland’s lead of reintroducing reliefs, announced this week.