House hunters have returned to the West Midlands this month, but are struggling to find available properties as the housing shortage rages on.
House buyers in the West Midlands could be facing a tougher time in future because of higher demand for new homes.
There are has been more people looking for a home in the West Midlands and fewer homes to choose from, according to new figures.
Home buyer demand has increased for the second consecutive month by 21% in October, according to the October RICS UK Residential Market Survey
This follows a slight slump following the Brexit vote, which left buyers feeling uncertain over the future and seemingly unwilling to invest in a mortgage.
There has also been a fall in the number of new properties coming onto the market, a trend that has continued unabated in the West Midlands for two years.
This combination of growing demand and falling supply has pushed house prices up further, with 55% respondents seeing a growth in prices - the firmest price momentum of any region across the UK.
These tight housing market conditions are expected to be a dominant feature of the West Midlands in the future.
Simon Rubinsohn, RICS Chief Economist, has commented: “The dire shortage of available housing across the region is continuing to push prices upwards, regardless of to 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.”
In the lettings market, tenant demand has picked up as a result of this activity in the buying market.
The three months leading up to October saw a 43% increase in enquiries related to rental properties in the West Midlands.
In fact, the UK’s biggest estate agency chain, Countrywide, have recently predicted that the rental market will outstrip house buying for the first time since the 1930s.
Similar to the housing market, this increase in demand is forcing rents upwards, with 46% of respondents reporting that rents will increase over the next three months.