With there currently being more than twice as many buyers as sellers active in the market across the United Kingdom, marking the largest supply-demand mismatch ever recorded at this time of year, new data has just revealed the latest buyer competition hotspot.
The research has found that the town of Shirley in Solihull in the West Midlands is Great Britain’s new buyer competition hotspot. The number of enquiries to estate agents about each available property in Shirley has more than doubled (143 per cent) compared to the same period last year.
Jamie Smart, Director at Smart Homes in Shirley, said: “We are still seeing really high demand and competition for homes. Whilst the stamp duty holiday was greatly received, we do get the impression that some buyers who had planned to move in 2022, moved their plans forward to take advantage of the stamp duty holiday last year. This means a percentage of the organic level of homes that would’ve come to market have already been sold.”
Over the last year, supply and demand imbalance has led to greater competition between buyers in many areas of Great Britain and the latest research shows that as the pandemic restrictions have been lifted, competition has increased most in areas just outside Birmingham, Newcastle and Manchester, as more people look to be closer to cities either for work or for their lifestyle.
Second on the list of hotspots was Jesmond, a Newcastle-Upon-Tyne suburb where buyer enquiries are up 141 per cent on last year; this was closely followed by Chorlton Cum Hardy in Greater Manchester (+138%).
However, price trends in each location have varied due to differing supply and demand dynamics since the pandemic began. For example, out of the buyer competition hotspots, the town to see the biggest increase in year-on-year asking prices is Jesmond in Newcastle-Upon-Tyne with an average asking price increase of 23 per cent year-on-year, followed by Acocks Green in Birmingham and Stratton in Wiltshire both with an 11 per cent increase in average asking prices from the year before.
Greg McCarthy, Valuer at Sanderson Young in Newcastle, said: “Competition for completion is fierce. We enter the spring selling season with a huge divide between supply and demand for this time of year, with more than twice as many buyers as sellers. As one of the most desirable areas in the North East, Jesmond has, as expected, seen huge demand, as this area is made up of exceptional prime property, often within conservation areas and offering outside space. With the after-effects of the pandemic, the ‘race for space’ is still evident for this particular marketplace.”
London’s Buyer Competition Hotspots
The also research found that Balham in south London has taken the crown as the Capital’s current competition hotspot, with a 113 per cent increase in buyer competition while Upminster in east London came in second (+108%) and Chessington in southwest London in the Royal Borough of Kinston came third (+106%).
When compared to this time last year, asking prices in the buyer competition hotspots have climbed by an average of 11 per cent.
Tim Bannister, Rightmove’s Director of Property Data comments: “At the moment, we’re seeing more than twice as many buyers as sellers in the market – which is good news if you’re looking to sell, as you’re likely to be met with multiple potential buyers for your home to choose from. For those looking to buy and navigate the current fast-moving and competitive market, agents report that ‘power buyers’ – those who have already found a buyer for their current property, subject to contract – are more likely to succeed in securing the property they really want.”