Competition among house buyers for properties in two North East areas is among the fiercest in the UK, according to a new report.
It follows research by property website Rightmove which measured the number of people sending enquiries to estate agents about each available property in an area compared to last year.
Outside of London, in first spot was Shirley in Solihull where competition more than doubled compared to the same period last year (143%), Jesmond in Newcastle was second on the list (+141%) while Alnwick in Northumberland was 10th with a 123% year-on-year increase.
Read more: Jesmond sees second largest jump in asking prices across the UK - with average price now over £350k
Asking prices have increased by an average of 11% in the hotspots compared to this time last year, as greater competition has supported price growth, however price movements in each area vary due to differing supply and demand dynamics since the pandemic started.
Across Great Britain, there are now more than twice as many buyers as sellers active in the market, which is the biggest mismatch between supply and demand ever recorded at this time of year.
Tim Bannister, Rightmove’s Director of Property Data comments: "Over the last year, supply and demand imbalance has led to greater competition between buyers in many areas of Great Britain.
"The data highlights that as pandemic restrictions have been lifted, competition has increased most in areas just outside Birmingham, Newcastle and Manchester, as more people look to be closer to cities either for work or for their lifestyle.
"As some areas have experienced more sustained imbalance of supply and demand than others, the impact on asking price change to date varies.
"At the moment, we’re seeing more than twice as many buyers as sellers in the market – which is good news if you’re looking to sell, as you’re likely to be met with multiple potential buyers for your home to choose from."
Greg McCarthy, Valuer at Sanderson Young in Newcastle, said the report's findings reflect what they have experienced.
He said: "Competition for completion is fierce. We enter the spring selling season with a huge divide between supply and demand for this time of year, with more than twice as many buyers as sellers.
"As one of the most desirable areas in the North East, Jesmond has, as expected, seen huge demand, as this area is made up of exceptional prime property, often within conservation areas and offering outside space.
"With the after-effects of the pandemic, the ‘race for space’ is still evident for this particular marketplace. Jesmond also has fantastic transport links, easy access to amenities and excellent schooling and these are hugely important factors for our clients.
"Sellers in this area remain in pole position, firstly, because of the potential to achieve a record price for their property. Secondly, the imbalance between high buyer demand for this area compared to low available property supply, meaning that the chance of being able to pick and choose between several suitable buyers is high.
"We are however beginning to see incremental increases in the number of Jesmond homes coming to the market as we enter spring and we hope this will continue, to help feed buyer demand."
Top 10 table for outside of London
Area: Increase in competition year-on-year; average asking price; increase in average asking price year-on-year
1. Shirley, Solihull: +143%; £352,791; +10%
2. Jesmond, Newcastle: +141%; £361,564; +23%
3. Chorlton Cum Hardy, Greater Manchester: +138%; £355,306; +6%
4. Stratton, Wiltshire; +135%: £266,815; +11%
5. Woodley, Berkshire: +132%; £446,650; +9%
6. Bedminster, Bristol: +128%; £360,256; +9%
7. Acocks Green, Birmingham: +126%; £221,153; +11%
8. Tavistock, Devon: +126%; £298,194; +1%
9. Melksham, Wiltshire: +123%; £277,455; +12%
10. Alnwick, Northumberland: +123%; £260,825; +16%
