Britain’s booming property market sees 13 buyers for EVERY home on sale

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Britain’s booming property market sees 13 buyers for EVERY home on sale… with some even following estate agents’ cars so they can be at the front of the queue

  • Agreed sales last month were up 57 per cent compared with April 2019
  • Many estate agents now immediately ask prospective buyers for their ‘best and final offer’ to ward off gazumping
  • Experts said the industry was working around the clock, and buyers were resorting to extreme measures to secure a home
  • Surge in demand has largely been driven by ultra-low interest rates and the stamp duty holiday on homes under £500,000 

By Max Aitchison For The Mail On Sunday

Published: | Updated:

Britain’s booming property market is producing record sales figures, with an average of 13 buyers for every home that gets listed.

Agreed sales last month were up 57 per cent compared with April 2019, with many estate agents now immediately asking prospective buyers for their ‘best and final offer’ to ward off gazumping.

Experts said the industry was working around the clock, and buyers were resorting to extreme measures to secure a home. 

Mark Hayward, chief policy adviser at estate agents’ lobby group NAEA Propertymark, said: ‘It’s quite aggressive out there. Some people are moving into rented property so they can move very quickly.

‘There are people moving into caravans and living in the area so they can be quick to pounce if something comes on the market. 

Britain’s booming property market is producing record sales figures, with an average of 13 buyers for every home that gets listed. Agreed sales last month were up 57% compared with April 2019, with many estate agents now immediately asking prospective buyers for their ‘best and final offer’ to ward off gazumping. (File image)

‘We’ve got instances where prospective buyers have actually followed agents in cars to properties so they can be the first in line. 

‘Others are instructing buying agents who scour the market for properties on their behalf.’

Others have turned to composing hand-written letters to persuade buyers that they would be the best new owner.

In April, more than 157,000 sales were agreed, according to figures compiled by property analysts TwentyCi.

The surge in demand has largely been driven by ultra-low interest rates and the stamp duty holiday on homes under £500,000, which has been extended to the end of June by Chancellor Rishi Sunak. 

The pandemic has also seen people reassess their living space, with a Zoopla spokesman saying that recent demand was focused on three and four-bedroom homes, with one doubling as a home office.

The surge in demand has largely been driven by ultra-low interest rates and the stamp duty holiday on homes under £500,000, which has been extended to the end of June by Chancellor Rishi Sunak

The surge in demand has largely been driven by ultra-low interest rates and the stamp duty holiday on homes under £500,000, which has been extended to the end of June by Chancellor Rishi Sunak

Nicky Stevenson, of estate agents Fine & Country, said: ‘The market is turbo-charged. There’s a huge demand for property and a significant lack of supply.’

Ms Stevenson said a recently listed property in Warwickshire had a guide price of £2.25 million. Within days, there had been 16 viewings and it sold for £100,000 over the asking price.

There are now an average of 13 buyers for every property, according to NAEA Propertymark. 

House prices are also rising at the fastest rate since 2004 – up 2.1 per cent in April to a national average of £238,831, according to lender Nationwide.

Property solicitors are at ‘breaking point’ trying to deal with sales

Property solicitors are at ‘breaking point’ trying to cope with the deluge of house sale transactions.

Some conveyancing firms are refusing new work as the industry struggles to cope with transaction numbers running at 130 per cent above normal capacity.

Tom Lyes, of trade magazine Today’s Conveyancer, said many conveyancers were working seven-day weeks.

‘It’s not an over-reaction to say it’s at breaking point. Many conveyancers are feeling broken and thoroughly deflated,’ he said. 

‘The movement of the stamp duty deadline to the end of June has effectively just moved the pain point further down the road.’

A recent survey of 200 property lawyers found 85 per cent had suffered mental health issues as a result of their workload, while 49 per cent had seen colleagues leave the profession.

Beth Rudolf, of the trade body Conveyancing Association, said lessons could be learned from Scotland where sellers have to provide documents up front and transaction times average only six to eight weeks, compared with 22 weeks in England.