You are here: Home - News -

Mismatched buyer demand could see housing stock dry up – L&G

by:
  • 20/08/2020
  • 0
Mismatched buyer demand could see housing stock dry up – L&G
An imbalance between the number of people wanting to purchase a home and the number of people wanting to sell could result in a lack of housing stock, a survey from Legal & General suggests.

 

The study of 2,106 respondents – 1,097 UK homeowners and 1,009 UK prospective first-time buyers – found a quarter werdefinitely planning to buy a home this year but just four per cent are definitely selling. 

Some 61 per cent of owner-occupiers said they had no intentions to sell in 2020 while 12 per cent were considering moving but had no plans. 

Of the prospective buyers, a further 28 per cent said they were thinking of purchasing this year. 

 

Regional demand 

London and the South East had the biggest mismatches in supply and demand, the survey showed. 

In London, 69 per cent of respondents said they planned to buy property this year but just 12 per cent of owners were considering selling. Some four per cent had definite plans to sell. 

For those in the South East, 57 per cent are looking to purchase this year and 12 per cent have intentions to sell. 

In Wales, 50 per cent of respondents were planning to buy in 2020, compared to 11 per cent of homeowners who said they were planning to sell. In Scotland, 49 per cent of respondents were planning to buy property and 17 per cent wanted to sell.  

The smallest gap between buyers and sellers was found in the South West, where 52 per cent of people planned to buy and 23 per cent planned to sell.  

Kevin Roberts, director of Legal & General Mortgage Club, said: “From first-time buyers to landlords, we are seeing unprecedented demand from consumers post-lockdown eager to move ahead with home moves and buy-to-let purchases. 

Yet, despite the numbers of consumers ready to buy, our research shows that thousands of homeowners are still reluctant to sell in 2020. This mismatch between buyers and sellers has the potential to dry up UK housing stock, making it harder for homebuyers to find a new place to call home.  

He added: “Supply and demand continues to be a challenge facing the housing market and while the government has already announced its plans to ‘build, build, build’, delivering on its commitments to build thousands more new homes will clearly need to be a priority to meet the demand from hopeful homeowners and landlords.” 

There are 0 Comment(s)

You may also be interested in

Read previous post:
Louisa Sedgwick
Vida Homeloans relaunches with mortgages up to 85 per cent LTV

Vida Homeloans has relaunched into the mortgage market with its standard range of residential and buy-to-let products available up to...

Close