New research from the National Association of Estate Agents has discovered that estate agents reported a substantial drop in housing demand during April.
The number of house-hunters registered per member branch actually fell to the lowest levels seen by the firm since March 2014.
Housing demand drop
According to the report, 325 would-be homeowners were registered per member branch during April. Demand has dropped by 22% in comparison to March, where 417 members were registered.
In addition, the supply of houses available for potential buyers also fell significantly, by 35%. This was a fall of 54 properties available to just 35.
Of the total number of sales made in April, 26% were made to first-time buyers, a fall of 2% from March. This said, 33% of estate agents expect sales to this group to rise in the wake of the stamp duty changes affecting the buy-to-let market. In turn, less buy-to-let landlords are thought to have interest, freeing up properties for first-time purchasers.
Housing demand falls during April
Brexit fears
24% of estate agents said that they expect property prices to fall, with 23% expecting demand to decrease should Britain vote to leave the European Union.
Mark Hayward, managing director of the National Association of Estate Agents, noted, ‘it’s no surprise that demand dropped significantly in April. 80% of agents saw an increase in purchasers trying to beat the buy-to-let stamp duty changes before the April 1st deadline, so we expected to see a slow-down immediately following the deadline. Whilst the number of house-hunters registered per branch dropped in April, the supply of available housing to buy also fell quite sharply, so supply and demand are still moving in the opposite direction, rather than balancing out.’[1]
‘Additionally, the upcoming EU Referendum means we’ve entered a period of uncertainty, as buyers put off their hunt in anticipation of the result and what might happen to prices as a result,’ Mr Hayward added.[1]
[1] http://www.propertyreporter.co.uk/property/house-hunters-at-lowest-levels-for-2-years.html