Demand for UK property on the up again in May

11 Jun 2021

New property buyer enquiries and agreed sales continue to edge up in the UK ahead of the stamp duty holiday deadline.

In addition, house prices continue to increase as new listings fail to keep up with the number of interested buyers, as per the latest RICS Residential Market Survey.

Last month, the number of prospective buyers continued to increase, with 32% more respondents to the survey reporting a rise from potential buyers.

Yet supply cannot keep up with the rise in demand, with a net balance of -21% respondents reporting another decline in new listings joining the market.

The gap between enquiries from new buyers and new instructions is at its highest since November 2013.

According to the RICS data, sales instructions are due to improve in the next few months, with the number of market appraisals increasing over last year.

Moreover, as people try to beat the stamp duty holiday deadline, newly agreed sales climbed once again. A total of +30% of respondents reported a rise in May, down from +47% in April.

Sundeep Patel, director of sales at Together said of the figures: “With both house price growth and prices up again in May, the demand for property continues to pick up the pace ahead of the summer months. House prices rose to +83% in May, up from +76% in April and 32% more respondents noted an increase from prospective buyers.”

He added: “Although, with today’s data showing -21% of respondents reported another fall in the number of new listings being brought to market and Andy Haldane’s, chief economist at the Bank of England, remark earlier this week about the UK property market being “on fire” - only reconfirms the widely reported market concerns over future supply and demand issues.”