Here is a thought leadership article from Dezrez
Currently, in the UK there is a major issue surrounding the shortage of housing stock. Although it has been widely publicised in the Welsh and English press, Scotland is also facing this massive issue. Within this article, we use recent statistics to observe and analyse whether the property market is at its peak or whether this trend will continue for a while longer.
Who is Dezrez?
At Dezrez we’re on a mission to connect the property world by providing estate agency software packages, products, and services that cater to all property professionals across England, Wales, and Scotland. We’re able to do this by giving agents control of their applications and data, whilst integrating with thousands of marketplace apps. Rezi not only saves agents time and money, but its streamlined reporting suite also drives actionable outcomes that focus on helping agents sell more properties.
Rezi software is fully cloud-based meaning that agents can work anytime and anywhere. Its industry-leading open API gives agents the flexibility to integrate with thousands of marketplace apps, speeding up workflows and automating tasks - meaning agents can spend more time selling properties!
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One of the most popular topics discussed among property experts today is the issue surrounding stock shortage. In 2021 the property market witnessed a massive surge of houses for sale in the UK. A combination of the stamp duty holiday (and its many extensions!) and the effects of covid-19 have meant that houses coming on to the market were in very high demand. On average there has been a 40% decline in stock across the UK in recent months. Although there has been much press coverage surrounding the stock shortage issue among the Welsh and English property markets, the same issues are being experienced in many areas of Scotland.
According to statistics from Property Mark, on average the number of houses available for sale in the UK has declined every month for the last eight months. In Scotland, statistics show that the number of properties available for sale in city locations such as Glasgow, Edinburgh, and Perth, has fallen by 45%.
With fewer properties available there is clearly increased competition amongst different estate agencies to win instructions. Another issue is that once houses are put on the market, they are being sold at an exceptional rate resulting in a substantial increase in house prices.
According to research conducted by the BBC, the average house price for a one-bedroom property in Edinburgh in 2011 was around £165,000. In comparison, today the same property could be put on the market for around £235,000. This 70% increase in Scottish house prices as a result of the stock shortage is making it near impossible for a younger person or those on lower rates of pay to buy a first-time home as they are often outpriced from the market.
Another issue is that, since the outbreak of COVID-19, there has been a lack of new housing construction due to a labour shortage and increased uncertainty surrounding building materials. As a result, Scotland has seen a 21 percent decrease in new home completions in 2021, which could be attributed to Scotland having stricter construction lockdown restrictions than England. Less new construction adds to the pressure on existing housing stock because there are fewer houses available and ready to sell in the market.
Overall, it is obvious that there is a massive issue surrounding stock shortages in the property market not only in Scotland but also in the UK as a whole. Although we could argue that we are witnessing the peak of the housing market the issue regarding stock shortages and thus higher market prices will however still continue if people are willing to continue to pay more for the property they want.
So, how do Scottish agents win more instructions and stay ahead of their competitors vying for the same business? There is no magic bullet that will increase instructions, but agents can gain an advantage by ensuring they "win in the living room." That means utilising digital information to make the vendors property stand out from the crowd during the valuation. Your CRM should provide all of this, whether it's interactive brochures, examples of online marketing, or testimonials. In today's highly competitive real estate market, it is more important than ever that your technology supports your business and improves customer service.
At Dezrez, we aim to ‘connect the property world’ by providing estate agent software packages, products, and services that cater to all property professionals. Our CRM software Rezi includes dedicated features such as notes of interest and closing dates to specifically cater to our clients in Scotland.
