UK Property Market Stock Reaches Five-Year High

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UK Property Stock Grows 20% Since Last Year According to Zoopla

Currently, potential home-buyers have the most options in five years for springtime housing. Compared to last year, 20% more homes are available for purchase.

This represents a significant increase, doubling the number of homes on the market compared to 2022, according to new research from Zoopla.

Let’s look at the figures in more detail below:

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UK Property Stock Growing in Coastal Areas

In the South West, the supply of homes for sale is notably high, with agents having 2.5 times more listings compared to spring 2022. This increase is driven by substantial capital gains over the past five years, encouraging homeowners to sell in these regions.

For instance, in Cornwall alone, prices have surged by 27%, while in Bournemouth, Poole, and Christchurch, prices have risen by 20%, offering potential profits for current sellers.

Nevertheless, the surplus of supply also means increased options for buyers in these coastal areas. The shift towards office or hybrid working arrangements means many potential buyers may lack the motivation to relocate for a lifestyle change. This decrease in demand from non-local buyers is causing a ripple effect on the time it takes to sell a property.

For instance, in Cornwall, the average time to sell a property has extended by 20 days compared to spring 2022. In Bournemouth, Christchurch, and Poole, it’s 23 days longer, surpassing the national average of 16 days.

If you’re looking to purchase coastal properties, you may want to consider looking further north. Liverpool’s Crosby area is often touted as one of the best places to live in the North West, and prices are significantly lower in the region than in the South West. In addition, Liverpool has one of the fastest-growing economies in the UK (per The Data City) and an average rental yield of 7.44% (per Zoopla), making it promising for buy-to-let investments.

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Property Types with the Most Supply in the UK

Families seeking larger homes will find good news, as the average agent outside London now has twice as many 4+ bedroom homes available compared to February 2022.

The availability of 3-bedroom homes, which consistently rank as the most sought-after property type, has also improved, with a 25% increase compared to last year.

Currently, 50% of buyers search for homes with specific features in mind, and the current housing supply is favouring external features. For instance, the supply of homes for sale with external space, outbuildings, and annexes has surged by over 70%. Additionally, there is an 86% increase in houses available with parking and a 63% increase in houses available with a garage compared to February 2022.

One of the reasons these properties are in higher abundance could be because people are struggling with the cost of living and downsizing their properties.

Nowadays, more people prioritise energy efficiency and EPC ratings to save money. Buy-to-let investors can take advantage of this by considering buying off-plan new-build properties. This accommodation type usually has energy-efficient features that help tenants save money. Due to their eco-nature and less chance of things breaking for a few years, these properties also command a higher rental cost, increasing potential yields. This helps answer questions such as; is now a good time to invest?

If you are interested in making money in property, these properties are often found in advantageous locations for capital appreciation, typically in areas like the Baltic Triangle and Liverpool’s Northern Quarter amid comprehensive regeneration plans. Over time, these areas will become sought-after places to live, attracting businesses and amenities, thus improving the postcode’s average rent and property prices.

Senior Property Researcher at Zoopla, Izabella Lubowicka, said: “The current spring boost in supply on the market gives potential buyers more choice than ever, but affordability continues to impact budgets. Sellers putting their homes on the market need to keep that in mind and ensure they are pricing their property realistically to achieve a sale.”

For more property investment insights, check out our buy-to-let area guides:

UK Property Market Stock Reaches Five-Year High