Demand for housing drops as the General Election uncertainty starts to kick in

The number of house hunters registered per branch fell to 381 in April. Supply of available housing also dropped, as sellers delayed marketing homes amid General Election uncertainty

Demand for housing

• The number of house-hunters registered per estate agent branch fell in April
• In March there were 397 per branch, down from 425 in January and February, but this figure dropped four per cent to 381 in AprilThis is most likely down to uncertainty triggered by the snap General Election starting to take effect, as buyers put their plans on hold until the result is clear
• Last April amid Brexit uncertainty, the number of house-hunters searching for properties was 17 per cent lower at just 325 per member branch.

Supply of properties

• Supply also fell in April; in March there were 39 properties available to buy per branch but in April this figure dropped by eight per cent to just 36 per branch
• This is the lowest level seen since April 2016 when agents had just 35 properties to market, as sellers held off until after the EU referendum.
• Sales agreed and sales to first time buyers (FTBs)
• The number of sales agreed per branch fell from 10 in March to eight in April, while the proportion of sales made to FTBs stayed the same at 25 per cent
• The rate of sales agreed above asking price rose to seven per cent in April, from five per cent in March. In line with this, the number of properties which were sold for less than the asking price dropped three percentage points from 75 per cent in March to 72 per cent in April

Rob McGregor, Associate Director of Property Sales commented:
Whilst this is the national picture in the lead up to the general election we think there has been a general shortage of properties all year especially in and around Edinburgh. The result has been faster selling times and increased prices creating a strong market for sellers.

According to the latest analysis from the ESPC, overall there has been an 11.4% decrease in the number of homes available for sale between February and April 2017. As a result, we have seen unprecedented demand for properties which are selling very quickly with massive premiums achieved over the home report, in particular in central Edinburgh and other prime districts.
Buyers are finding it difficult to secure a property often being outbid at competitive closing dates. The key is to ensure you have your ‘ducks in order ‘:

• Instruct a good solicitor/estate agent who has excellent market knowledge and is prepared to take the time to advise on your offer especially if there is a competitive closing date
• Ensure your finance is in place

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For More Information Contact:

Rob McGregor
Mobile: 07841 920088
Direct Dial: 0131 516 5368
Email: rmcgregor@gilsongray.co.uk

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Matthew Gray
Mobile: 07730 001053
Direct Dial: 0131 516 5367
Email: mgray@gilsongray.co.uk

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The information and opinions contained in this blog are for information only. They are not intended to constitute advice and should not be relied upon or considered as a replacement for advice. Before acting on any of the information contained in this blog, please seek specific advice from Gilson Gray.