Numbers of new sales instructions jump 11% across the UK according to Home.co.uk
Latest Home.co.uk Asking Price Index report December 2017 released today headlines ‘Sales Supply Jumps as Rental Supply Falls.’
The headline section leads: The number of new sales instructions has jumped by 11% across the UK while the supply of rental properties has fallen by 16% (Nov 2017 vs. Nov 2016).
The report reveals that the London slump continues to weigh heavily on the national annualised growth figure, looking across the regions Home.co.uk continue to observe a complex mix of both improving and deteriorating markets.
Doug Shephard Director at Home.co.uk said: “So is the Private Rented Sector a large enough segment of the market that an exodus from Buy-to-Let could topple the housing market?
” Well, the sector has grown to around 20% of residential property ownership, so it’s certainly significant. Moreover, should the average landlord decide to sell one of every four properties in their portfolio in 2018, there would be 1.4 million more properties for sale. Such a number would clearly swamp the market (there are 0.4 million on sale currently) and cause home prices to crash.
“Of course, this is a vastly ‘overcooked’ scenario but it serves to make a point. Any sort of BTL exit will tip the market to the downside and the UK government should be monitoring the situation very carefully. Why? Because such a risk to the housing market would imperil the banks (again) and the wider national economic interest, especially post-Brexit.” more…..
Read the Home.co.uk Asking Price Index report December 2017 in full click here.
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