news release

Number of homes for sale falls to lowest point in two years, reveals Experian’s Property Index

Home buyers must ensure they have a mortgage agreed before looking at properties or risk missing out

14 February Nottingham, UK – Experian®, the global information services company, has revealed that after two years of year-on-year increases in the number of properties being listed ‘for sale’ each quarter, the final few months of the year saw the number of homes for sale fall for the first time. 

The latest Quarterly Property Index from Experian has revealed that there were 13 per cent fewer homes on the market to buy in October, November and December compared to the same quarter in the previous year. 

Jonathan Westley, Managing Director of Consumer Information Services at Experian UK & Ireland, comments: “The final few months of the year are generally slower than any other time of the year, but we are also comparing it to a period in 2012 that saw an unusually high number of properties coming onto the market for sale. 

“If the fall in homes for sale continues and the government’s ‘help to buy’ scheme kicks in, then those people hoping to get onto the property ladder will need to be ready to put an offer down as soon as they find the house they love.  That means having a mortgage in principle already agreed or they could miss out.
 
“We know that lenders are taking steps to fully understanding a person’s financial position in order to make fair and responsible decisions about lending to them.  We can help potential home buyers prepare for this, presenting themselves in the best possible light to lenders to be eligible for a mortgage.”

Prices ranges

• The biggest fall in properties for sale was led by homes valued between £100k and £250k down 15 per cent, compared to the same period in 2012.
• This was followed by homes at the higher end of the price bracket, £250k to £500k and over £500k, falling by 12 per cent and 13 per cent respectively. 
• The number of more affordable homes (priced at less than £100,000) fell by 6 per cent.

Regional highlights

• Yorkshire and Wales witnessed the biggest declines in properties coming onto the market for sale – down 27 and 24 per cent respectively.
• London and the North East continued to see high end properties coming onto the market for sale – 3 per cent and 11 per cent.
• Only the North East and Scotland saw affordable homes (valued under £100,000) for sale increase – up 55 per cent and 8 per cent.

Before applying for a mortgage, here are a few things potential home buyers should consider.

1. Understand what is on your credit report before you meet any lenders.  Pay attention to addresses, whether you’re listed as being on the Electoral Roll at your current address, financial associations which are no longer relevant and or outstanding accounts that should be marked as settled.
2. Does your credit score need work? Understand how past credit management can impact on future credit applications and how you can monitor your progress as you get your finances in order before you apply.
3. Shopping around? Decide what kind of mortgage you want, how much you can afford and compare products you are likely to qualify for.  Experian CreditExpert matches your credit profile to the best deals you are most likely to be accepted for.
4. Remember your credit report is only one part of your application.  Lenders also use the information provided on your application form and that they already hold on you (if you’re applying through your bank, for example).

For lenders interested in finding out how information about property type, value and ownership can help them understand and treat their customers more fairly, please visit www.experian.co.uk/property-data

For people interested in learning more about their financial information and improving their credit ratings to help qualify for credit deals they can afford to pay back, please visit  www.creditexpert.co.uk

Serj Heera
Head of PR
Credit Services, UK and EMEA

E: serjeet.heera@uk.experian.com