Property experts are reporting that the gap between supply and demand is the widest seen in Leeds since 2013. Estate agents across the city – including North Property Group – are witnessing huge demand from home buyers and people seeking a Leeds property investment.
But the number of new properties coming to market can’t keep up, with many selling in a matter of days.
Rapidly rising demand
According to a survey by the Royal Institute of Chartered Surveyors (Rics) in May of this year, a net balance of 32% of property professionals recorded an increase in buyer enquiries.
And things haven’t been different at North Property Group. Oli Banks, managing director of the Leeds-based estate agents, said, “things didn’t really slow down for us during the pandemic. Now we’re on our way out of it we’re seeing unprecedented levels of demand.
“The amount properties that are coming onto the Leeds market can’t keep up with the huge numbers of enquiries coming into us, both from owner-occupiers and buy-to-let investors.
“It shows the strength and resilience of the local property market and what a good option a Leeds property investment is.”
Biggest undersupply in almost a decade
However, against this background of rapidly rising number of prospective buyers, the Rics report recorded a net balance of 21% of surveyors saying they’d seen a fall in the number of new property listings.
According to Rics, this makes the gap between new buyer enquiries and new properties coming to market the widest it’s been since November 2013.
Boost to house prices
The chronic undersupply of housing compared to market demand is putting upward pressure on Leeds house prices. This is great news for people already with a Leeds property investment, as it will boost their capital growth.
The Rics survey reported that 83% of property professionals noted a price increase rather than a decrease – up on the 76% of the previous month.
A lasting trend
Even with the stamp duty holiday coming to an end, it is likely that Leeds property prices will remain high.
Simon Rubinsohn, Rics chief economist, said: “Ending a tax break always has the potential to be a little disruptive for a market but with the economy performing better than could have been expected even a short while ago and the cost of money still at rock bottom levels, the principal drivers supporting demand will remain in place even after the expiry of the stamp duty holiday.”
Gráinne Gilmore, head of research at Zoopla, agrees. She said that coronavirus pandemic had created a “once in a generation reassessment of home.”
She explained, “People have spent longer in their homes over the last 12 months than at any other time.
“They’re thinking ‘do we want to live here, can we live somewhere else, will my work allow it, do we need more outside space, more inside space’.
Whether you already have a Leeds property investment or are in the market for your first one, to find out more about the Leeds property market contact North Property Group now.