There are fewer properties available than ever before, as a result of a drop in the number of developments being put up for sale.
The UK Residential Market Survey from the Royal Institution of Chartered Surveyors (Rics) has revealed a 13 per cent fall in new instructions, resulting in historically low stock levels.
It stated that estate agents typically have just 34 residential properties available to sell, which is why near-term sales expectations for the month returned a net balance of -30 per cent.
A spokesperson for the group said: “The September 2022 Rics UK Residential Survey results remain indicative of the sales market losing momentum, with the outlook for interest rates and the uncertain macro picture more broadly taking a toll on activity.”
It was predicted that the rise in mortgage rates will outweigh the balance of stamp duty cuts, and the lack of supply on the market will continue to force house prices up.
Due to rising prices and increasing mortgage rates, new buyer enquiries fell by 36 per cent in September, declining for five consecutive months in all regions of the UK.
The Bank of England recently (November 3rd) increased the base rate yet again from 2.5 per cent to three per cent. This represents the largest growth since 1989, and the eighth time it has risen the rate recently.
This time last year, the base rate was just 0.1 per cent, showing just how much interest rates have grown in the last 12 months for those on tracker mortgages.
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