Homes shortage pushes up Westcountry property prices
08-17-2015
By Western Morning News
By Liz Parks
Estate agent's window
A shortage in homes coming onto the market is pushing up house prices in the Westcountry.
The supply of homes for sale has fallen to a new low, the Royal Institution of Chartered Surveyors reported in its latest housing market survey.
The shortage of properties on the market worsened in July to its lowest levels since records started in 1978, with about 47 properties for sale per surveyor.
Jeff Cole, from Wadebridge-based Cole, Rayment & White, said: "New instructions are in short supply across the area.
"However, sales remain strong. North Cornwall continues to be very popular and there are lots of visitors now here, which is increasing sales and viewing activity."
David Dark, from Seldons, in Bideford, said: "Shortages in some sectors are resulting in more than one buyer competing and putting pressure on prices."
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Promoted by William HillRICS members have said that a lack of homes for sale is causing a "vicious cycle", whereby the limited choice on offer is, in turn, putting would-be movers off putting their home on the market exacerbating the problem.
Average stock levels have fallen by a fifth since January, with all areas of the UK projected to see sizeable price gains over the next 12 months as demand rises at the fastest pace seen since February 2014.
Despite growing demand from house hunters, the number of new sales agreed has remained unchanged across the UK, suggesting the supply shortage is preventing transaction levels from increasing significantly, it said.
The South West is bucking this trend, with the volume of sales increasing in recent months, although there are variations within this trend. Simon Cooper, from Stags, in Exeter, said: "There are two distinct tiers to the market. The lower end and the city market is buoyant whist the top end of the market is decidedly sluggish."
Michael Dukes, from Greenslade Taylor Hunt, in Taunton, said: "A patchy month still with great variation amongst the branches.
"The larger offices fared better but some of the more rural areas are still slow."
RICS said that a "strong majority" of 68 per cent of surveyors perceive current market valuations in their areas to be either around or below their fair value at present.