There are 11 buyers competing with fellow house hunters for each residential property on the housing market in the UK. Are you looking for success in the property market? Discover with Personal Loans Now 10 fantastic ways to succeed in the UK’s highly competitive property market.
- The survey commissioned by a bridge lender
- Reasons for the lack of housing in the UK
- What the survey covered
- The top 3 tips for success in the property market
- Other good tips
- The most surprising result
Success in the Property Market
In an attempt to glean from existing house owners the most important factors responsible for the success of their purchases, bridge lender, MFS commissioned a survey. The people surveyed were of all ethnicities, ages and backgrounds and the number of people who participated in the survey was 2000. At present in the UK, there are 11 buyers competing with fellow house hunters for each residential property on the housing market. All the participants surveyed are home-owners who have bought a property in the last ten years, and the data reveals their top 10 tips for people who are trying to buy property in the UK.
Housing Shortage on the Property Market
It is not just the amount of immigrants in the UK that is responsible for the shortage of housing on Britain. Not enough housing is being built to keep up with the demand. Over the last 20 years, there have been 100 – 170,000 homes built annually, but this is only half the amount that has been needed to keep up with buyer’s demands. The lack of available housing has increased the price of property in the UK, especially in the South East. The most expensive borough to own a home in is Kensington and Chelsea where the average price of a property is £1.2 million. In contrast, the cheapest area to buy property is in Blaenau Gwent where the average will cost a house hunter £82,000.
Property Market Survey
Each member of the survey was given a list of 10 factors vital to their success in the property market – with purchasing a home and were asked to grade these on a scale of 1 – 10. Here is what these people thought would make a house hunter successful:
|List||Factor for success||Mean score out of 10|
|1||Knowing the budget and the type of property from the start of the house hunt||7.86|
|2||Immediate access to the required money||7.78|
|3||Not being part of a chain||7.18|
|4||Taking fast action, bidding on the desired property and then beginning the formal processes||7.15|
|5||Not limiting the property search to only one area and being more flexible||6.87|
|6||The ability to offer on or above the asking price||6.81|
|7||Not insulting the seller by offering too little||5.88|
|8||Putting bids in for properties in need of renovation||5.87|
|9||Having preferred relations with the estate agent of seller||5.48|
|10||Willingness to gazump other house hunters||5.07|
How to Ensure Success in the Property Market
The previous house buyers in the UK felt that knowing your budget, where you can afford to live and the type of property that you are looking for from the onset of the search for a home was the most important factor of those asked of them in the survey. They rated this factor an average of 7.86.
Knowing exactly what you want and how much money you have to spend means that when you see the right property you will know that this is what you have pre-clarified in your mind as to satisfy your requirements. Then you can bid quickly by having access to immediate funds, without having to take out a long term loan. This was ranked the second most important in the survey, scoring 7.78. Being chain-free was rated the third highest at 7.18 as this can slow the whole house buying process down when there are others involved.
Other Factors That Lead to a Successful Property Purchase
Another high scorer with an average of 7.15 was the need for speed. Previous buyers expressed the significance of acting quickly when a buyer sees the property that is right for them. With so many other house hunters in competition for so few residential properties this is essential for success. Being flexible regarding the location of the property was also rated highly with an average of 6.87. Having a larger area from which to find a suitable home will obviously lead to finding one sooner as there are more available. Once a property has been found, the ability to give the seller their asking price or something a little over was ranked close behind at 6.81.
So what have we learned so far?
- Bridge lender MFS have surveyed homeowners.
- The 2000 people surveyed were of all races, ages and from different backgrounds.
- They all own homes bought in the last ten years.
- There are 11 buyers competing for each property in the UK.
- Half the amount of homes needed have been built over the last 20 years.
- Housing is much more expensive in the South East.
- People were asked to grade 10 factors for successful house buying from 1 – 10.
Results From the Property Survey
The practice of gazumping has frequently been cited as a reason for people not getting on the property ladder in England and Wales, but the people surveyed did not seem to think so and ranked it with an average score of 5.07. Being gazumped is when a rival bidder puts in a last-minute rival bid for the property that someone else was attempting to buy. This survey could help many prospective homeowners in their search for a property by listening to the helpful tips that have been provided by successful homeowners.
With such stiff competition for house hunters, this survey could prove useful to many by listening to the advice of people who have succeeded in purchasing homes over the last ten years. When staring the search with a clear budget and a definite idea of the kind of property that a person is after it seems that they may have more success in the property market, according to the majority of the people asked. Acting quickly and having immediate access to funds, not needing to take a personal loan, were other tips that may be helpful. The willingness to gazump other buyers did not get a rating as high as all the other factors concerning the successful purchase of a home.