Lack of Supply of Family Homes in Scotland
According to the latest data, the supply of family homes has reached a five-year low.
The pandemic has had a profound effect on the behaviour of buyers’ here in Scotland – something that no one could have predicted. When the country was first locked down in March 2020, the initial long term market predictions tended to be that once the market opened back up again, house prices would fall. This resulted into several buyers pulling out of sales due to this uncertainty. However, prices have risen by nearly 11% to the year in March 2021 and according to the Office for National Statistics, we have seen the highest price inflation in 14 years.
One of the reasons for this unprecedented rise in house prices is buyers’ appetite for more space as many people continue to work from home during these changeable restrictions and with classes often isolating periodically, many people have found that they are continuing to home school. After months of being confined to our homes and only being able to socialise outside in our gardens for much of last year, people are looking for more external space. This has resulted in a sharp fall in the number of three and four-bedroom homes on the market.
Supply of homes
The number of four-bedroom homes for sale has fallen by more than 20% year-on-year in all regions of the UK, with Scotland seeing a fall of nearly 60%.
The availability of three-bedroom properties is has also fallen and this type of property now accounts for just 25% of all homes for sale according to the Zoopla House Price Index.
At present, houses account for 59% of listings, compared with 76% in 2017 and there is a clear mismatch in demand and supply – with home buyer activity up nearly 28% from the average level in 2020 and the number of homes for sale in the first quarter of this year is 19% less than the 2020 average despite the closing of the housing market last year.
A sellers’ market
Buyer demand is currently very strong, so if you are thinking of selling a family home with three or four bedrooms or even room to expand, you will be in an extremely strong position and with the current lack of supply your property will generate a high level of interest.
Although there has been a distinct lack of supply we are now in a traditionally busy period as more properties have been listed for sale since the schools started and as sellers look towards being settled in a new home in time for the new school year. What’s more, as lockdown measures ease and sellers have the confidence of the vaccine, they are more open to letting people view their homes.
Selling times in Scotland are some of the fastest in the country but while your home could be under offer in a matter of days, it’s worth remembering that there have been some delays in terms of the sale completing. However, this also gives sellers time to secure a home if they have sold first.
Clyde Property is a leading independent, multiple award-winning estate and letting agent with more than 30 years’ experience in selling and letting property in Scotland. Just calltoday for friendly, impartial advice on finding your next dream home.