Demand remains well above levels seen last year
The UK housing market is experiencing a severe shortage of properties for sale as buyers rushed to the market before the end of the stamp duty holiday.
Zoopla, the property site, has said that Britain is facing up to its “greatest stock shortage since 2015” as the number of properties on the market plummeted in June when compared with the average level in 2020.
With demand remaining steady, well above levels seen last year, supply shortages could last until 2022, according to Zoopla, as house price growth looks set to carry on.
“The headline rate of house price growth is running at 6% year-on-year and this is expected to moderate to between 4% and 5% by the end of the year,” Zoopla said in its monthly house price index.
The average price growth for houses is at 7.6%, while for flats this figure falls to 1.2%.
The stamp duty holiday, which provided £15,000 of relief up to £500,000 on the purchase of a property, is now being tapered down. Until the end of September, buyers can get relief on the first £250,000.
Gráinne Gilmore, head of research at Zoopla, said: “The post-pandemic reassessment of where to live has further to run, especially as workers receive confirmation about flexible working. This means higher levels of demand will still be evident and potential vendors with family houses to sell could be in pole position.”
“However, the lack of supply, especially for family houses, means the market will start to naturally slow during the rest of this year and into next year as buyers hold on for more stock to become available before making a move.”
