The number of properties on the market fell again in October, as demand for property continues to rise for a second consecutive month across the West Midlands.
According to the October RICS UK Residential Survey, demand has increased by 21% in the month of October compared to 18% for September. With buyers still feeling uncertain following the Brexit outcome in June and holding off listing their properties for sale, we are seeing prices rise.
55% more respondents reported property values increasing, rather than decreasing across the region, with the West Midlands seeing the firmest price momentum of any other region in the UK.
The fall in the number of properties coming to market within the West Midlands is not a new trend however, but something has been unrelenting for the past two years.
Simon Rubinsohn, RICS Chief Economist, has commented: “The dire shortage of available housing across the UK is continuing to push prices upwards, regardless of the uncertainty linked to the ongoing discussions surrounding Brexit. We are only weeks away from the Autumn Statement, and it will be interesting to see what measures – if any – the Chancellor will put in place to increase housing supply and create a more affordable market.”
The lack of homes for sale in the region has led to increased demand in the lettings market, with growth in the sector picking up over the three months leading to October. Due to low supply in the sales market the region has seen a 43% increase in rental property enquires, fuelling an increase in rental prices and further supporting recent predictions that the rental market will soon outstrip the sales market.