The supply of available housing for sale has plunged to a new low while demand from buyers has surged in recent weeks. Housing supply is now at its lowest level in 14 years, according to the National Association of Estate Agents (NAEA). This shortage is being fuelled by a “swarm” of landlords looking to beat the buy-to-let stamp duty surcharge which comes into force later this year. The number of properties available to each NAEA member branch fell to just 35 in January and February this year. These are the lowest figures recorded since December 2002 when just 25 properties were available per member branch. In contrast, demand for housing soared in January, with an average 450 prospective house hunters registered per branch. These figures are the highest recorded since July 2015 and a rise of over 20% since December. Rising demand reflects increased activity from new and existing landlords pushing to complete sales ahead of the upcoming buy-to-let stamp duty surcharge, which comes into effect on 1st April 2016. The effect of all this activity has driven up house prices across the country with agents reporting as much a 5% in some areas. Many members are reporting landlords are turning to bridging finance to clinch the deal at a lesser price. Bridging finance will also allow the landlord to complete the purchase before the 1st April deadline. All these facts and figures go to prove that landlords are showing great resilience and confidence in the future of the buy-to-let market.
