Shortage of homes for sale forces vendors to pull out of property deals
Property sales in one of the UK's hottest markets are stalling as vendors pull out of deals or delay moving because they are unable to find another home to buy.
The number of properties for sale in Cornwall was down by more than 37pc in the first three months of 2021 compared with the long-term average, according to property website Zoopla.
This acute shortage of property for sale is deterring some hesitant sellers from coming to market, concerned they will not be able to find somewhere else to buy and will be left renting.
Chris Clifford of estate agency Savills said would-be downsizers in Cornwall were reluctant to come to market without first securing their next property.
"Some of them are just sitting tight and waiting for the market to calm down a bit," he said.
"Particularly with a lot of people who are downsizing here, they are of an age and stage in their life when they don't have to rush a sale. They can do it on their own terms and don't want to rent in the meantime."
Cornwall overtook London as the most searched-for location by buyers earlier this year, according to Rightmove. House prices in the South West grew at 17pc last year, the fastest rate in the UK, according to lender Halifax. Much of the price growth in the South West has been spurred by the second home market, with buyers seizing the opportunity to buy next to the sea or in the countryside.
Martin Brown, of Stratton Creber estate agents in south Cornwall, said bidding wars were commonplace.
He added: "There are just not enough properties coming to market. A lot is sold before even coming to market and as such buyers struggle to find what they looking for."
Mr Brown said some buyers in Cornwall had lost out on buying a property because the sellers pulled out of the transaction because they could not find anywhere to buy.
Simon Cooper of Stags, an estate agency in the South West, said he knew a small number of sellers who had postponed a sale until next year, having been unable to find another property to buy.
The imbalance between supply and demand in the South West has been a driving force behind price increases across the country, particularly in pricier locations. Annual price growth in the prime rural market hit its highest level since before the global financial crisis in the first three months of 2021, according to estate agency Knight Frank.
Tight supply had a particular impact on the higher end of the market, with average prices for country homes valued at £5m or above jumping in value by 7.3pc in the first three months of the year.
Experts have reported gazumping is "back in full force" amid the ongoing supply shortage in the UK. The share of homes that attracted three or more offers hit 41pc in April, the highest figure since the data was first compiled in 2010, according to Hamptons estate agents.
The average home attracted an offer within 17 days of being listed in April, compared with 26 days in April 2019.
