Call 01743 241181 for friendly & expert advice

Latest News

Search Sales
Search lettings

House prices remain hostage to supply

As average UK house prices hit a new record high in July, the market is changing, writes Alistair Hilton, head of sales at Balfours. While demand is easing, the real issue for house hunters remains, choice and supply coming to the market.

It is because supply is so short that for the last six consecutive months new record average UK house prices have been achieved, with July’s average house price rise hitting close to £370,000. Our clients in Shropshire and bordering counties have not been disappointed.

Rightmove data is also telling us that demand is 26% higher than it was in 2019, as the pent-up market remains unsatisfied with the number of homes coming to the market, the market remains very bullish. People simply want to get on with the next phase of their lives – and that has a value.

Now compare demand up by 26%, with the number of homes available for sale, down 40% down compared to 2019. Now we can begin to see why average prices have seen such uplift in the past six months.

This continues to suggest that for the foreseeable future, despite the cost-of-living squeeze, there is unlikely to be slackening on current house values; conversely with the forecast squeeze, it would also seem unlikely that they will continue to climb.

Alistair 2021

Subscribe to our newsletter

The Balfours email newsletter is the best way to keep up to date with new properties and the goings on at Balfours.

You can subscribe online here. We will never share your details with third parties without your consent.