Is the property boom about to cool across the UK?

 
Is the property boom about to cool across the UK?

If one thing has characterised the UK property market over the course of the past year, it has been the supply and demand imbalance.

House prices have increased by more than eight per cent in just a year, caused by fewer homes coming onto the market. 

While it has been positive to see prices recover and surpass 2007 peaks, many have predicted that it may be unsustainable in the long run.

But has all this doom and gloom come too soon? It seems so, as a new report has suggested that favourable conditions are starting to see more people selling at last, with an increase in listings with estate agents now likely to help address the supply and demand imbalance at last. 

According to the latest report published by the National Association of Estate Agents (NAEA), the number of homes that have been listed with estate agents has risen by an average of 11 per cent in July. The average volume of listings per branch climbed from 46 in June to 51 in July. 

The NAEA said that this was the highest level of single-month growth seen at any time in the past three years - a sure fire sign that more sellers are coming to market, and a real indicator that the supply and demand issue could potentially become a thing of the past. 

Another positive came in the shape of an ever-so-slight fall in the number of people who are looking to buy properties. According to the report, the number of house hunters per branch shrunk in July, falling to 368 from the 371 that was recorded in June. 

This has been declining in a similarly slow-but-steady fashion ever since June, and this can only be good news for house hunters and investors, who are able to get their hands on property without quite the same level of competition that they were faced with throughout late 2013 and early 2014. 

"The lack of housing supply has been a significant issue over the last few months, so the sign of increasing stock is positive for the market and house buyers in search of their ideal home," said Mark Hayward, NAEA managing director. 

Any move towards a better supply and demand balance will be positive news for buyers nationwide, and this should help to further improve prices, which recent reports have shown are starting to show easing rates of growth in recent months.