Housing stock crisis is driving up property prices

HOUSE prices will continue to rise due to the shortage of available homes on the market, according to Zoopla chief executive Charlie Bryant.

Martin Roberts discusses the rise in house prices

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He said that the problem for prospective home owners is that there “simply isn’t enough supply out there”, even though completion levels by builders have surpassed pre-pandemic levels. The available housing stock is at 25 percent below average levels according to Bryant. It is exacerbated by people such as those with fully-grown children who have left home, staying in properties that no longer suit their circumstances.

Despite the shortage of stock, the housing market is soaring, driven by people looking to move out of London and other major cities into places with more space. 

As a result, Zoopla forecasts that more than 1.5 million homes will change hands this year, the highest total since the 2008 global financial crisis.

According to the Office for National Statistics, the cost of an average house in the UK has grown from £167,470 to £256,000 over the past decade.

Bryant added that in the past 20 years there had been “very little innovation” in the property market ‑ something Zoopla wants to address with its latest venture, My Home.

House for sale

Zoopla forecasts that more than 1.5 million homes will change hands this year (Image: Martin Prescott/Getty)

Couple looking at property

Zoopla’s My Home hopes to be a one-stop portal (Image: Sturti/Getty)

Zoopla says it will differ from other offerings as it will be a one-stop portal that helps people navigate their property needs over a lifetime, from their first home to moving into a second and downsizing. Aside from help when moving, it will also have features to help manage homes.

Bryant said: “It’s time for the next revolution in the property market. The first was when people could see data online, the second was when people could transact online. The next generation of home owners are growing up in a different world, they’re used to things on demand.”

Although My Home is already live, Zoopla is adding a raft of features and functions to it and Byrant said that he hopes it will be “fully formed” by next summer. 

To drive up usage, it will start marketing in time for Boxing Day, which is the peak period for people visiting property portals.

Zoopla says that My Home will help people understand how the value of their home changes on a monthly basis and what the factors responsible are, such as nearby recent sales and current demand.

When moving it will show houses that suit all of a client’s needs, and not just according to standard parameters such as rooms, price and area. 

It will also offer tips to make the home-selling process less onerous and faster, while at the same time maximising the price.

Looking for a new home, or just fancy a look? Add your postcode below or visit InYourArea

Harry Byrne

Harry Byrne

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