- More potential purchasers want UK property now than at any point in the past 11 years
- UK real estate is one of the world’s safehaven property classes, with strong supply and demand dynamics
- Strong demand for property is likely to drive capital value increases in the future
Real estate investment in the UK has a long history of high returns and sustained growth due to its supply and demand dynamics, and the latest research shows now could be an effective time to invest.
The August report from the National Association of Estate Agents (NAEA) shows the number of house hunters registered per branch increased by a further 5%, to an average of 462 per branch compared to 439 in July.
The last time demand for UK real estate was this high was in 2004, when an average 582 potential property purchasers were recorded per NAEA branch.
Furthermore, the report also revealed the number of transactions completed in July remained static from May and June, with just nine per branch and the number of sales made to first-time buyers fell in July. The group now accounts for less than a quarter of new sales.
Mark Hayward, NAEA Managing Director, said: “The truth of the matter is though, there simply aren’t enough houses to meet growing demand, and until we see more physical bricks and mortar, there may be no hope in solving the housing crisis.
“It’s also alarming that the number of sales being made to first-time buyers is steadily falling; with reports of house prices increasing and expectations of rising in the future, first-time buyers will continue to be pushed out of the market.”
This means that tenant demand – already at an all-time high – is likely to increase, creating strong rental yields that will entice further investors to the market.