Lack Of Homes On Market Driving House Prices

One thing we have noticed in the North London housing market is that demand far outstrips supply. At Ariston Property, we have a list of interested buyers looking for property across the north of the capital. However, the supply of property isn’t at the same level, and this is a story across the country.

One thing we have noticed in the North London housing market is that demand far outstrips supply. At Ariston Property, we have a list of interested buyers looking for property across the north of the capital. However, the supply of property isn’t at the same level, and this is a story across the country.

This imbalance between supply and demand can be seen in house prices rising again, at least according to information provided by a well-regarded source in the UK housing sector.

People saw property prices rising

The Royal Institution of Chartered Surveyors (RICS), according to their latest report, said a “net balance” of 70% of their members saw an increase in property prices in October 2021. For September 2021, this figure was 69%, meaning October was the first time where was an increase in the reported property price balance since May of this year.

RICS chief economist Simon Rubinsohn released a statement, saying; “The inventory on agents’ books appears to have slipped back towards historic lows and this seems to be underpinning both the current price trend and expectations for the next year. Meanwhile although there is likely to be some drop in activity in the immediate aftermath of the expiry of the stamp duty break, most activity indicators currently remain solid. Indeed, the main challenge for buyers looking forward may once again be a lack of choice of property on the market.”

People expect house prices to rise in 2022

The RICS report also suggests over two-thirds of surveyors believe property prices will continue to rise in 2022. Even though it is likely that the Bank of England will increase interest rates in the next few months, the fact that demand far outstrips supply of property means many industry experts expect house prices to keep on rising.

Jeremy Leaf is a former RICS residential chairman with experience in the North London market. He spoke about the RICS report, saying; “The monthly RICS housing survey is invariably a reliable indicator of market trends. This latest report is no exception and confirms what we are seeing on the ground – more resilience than expected after so many brought forward purchases in the summer taking advantage of the stamp duty holiday in particular. However, transaction numbers have reduced and prices have softened a little since as the frenzy of the last few months has been replaced by calmer conditions as supply and demand become more closely aligned.”

These are extremely challenging times in the housing market, which is why you need support from experts who know the local market in North London. We are pleased to say we have assisted many households in moving in, out and around this part of the capital, and if you are looking for help, we are here to make a difference.

We know these are challenging times, but if you have any questions about the local property market, please feel free to contact us. At Ariston Property, we aim to support the local community as best we can, and we look forward to assisting you in any way.