"Appetite in the market continued to rally in April as the number of new buyers registering to buy rose by a further 4% on the month, bringing the annual increase to almost 40%. "
Numbers registering to buy are at the highest level since April 2016, but the number of properties coming onto the market has risen by just 5.5% on the month and 18% on the year.
Haart's data shows that there were over 11 buyers chasing every property across England and Wales in April.
Prices across England and Wales fell by 1.7% on the month but rose by 1.2% on the year.
The average purchase price for first-time buyers has fallen by 2.9% on the month and by 7.8% on the year. This comes as the number of first-time buyers registering onto the market has decreased by 3% on the month but has risen by a substantial 32.1% on the year.
Paul Smith, CEO of Haart, commented: “Appetite in the market continued to rally in April as the number of new buyers registering to buy rose by a further 4% on the month, bringing the annual increase to almost 40%. Whilst it is not unusual to see the market pick up at this time of the year, the number of interested buyers on our books is at its highest since April 2016, our website traffic is surpassing seasonal trends, and transaction levels have seen the biggest monthly jump since last summer, as the market gears up again.
“However, the number of homes available to buy is still hovering below pre-referendum levels, despite a significant jump on last month. The UK’s undersupply of properties continues to hold back fluidity within the market, and thousands of Brits remain in homes that no longer suit their needs.
“The London market is also began to warm up in April. Buyer registrations and instructions increased on the month, and first-time buyers still want to buy in the capital. But, the abundance of restrictions and additional costs heaped on landlords is certainly taking effect on the lettings market. Rental stock is down 40% on the year, which is in turn has pushed rents up by 5% on the year – far surpassing the growth of average take home pay.
“The current state of the market is becoming unsustainable for many. How can the government’s housebuilding agenda maintain momentum when the person in charge is being swapped out every few months? A lack of suitable homes is one of the biggest challenges the country is currently facing, and young people deserve more consistency in the government department that is meant to be helping them achieve the home ownership status that they deserve.”
