Regions to avoid? The property markets with the most supply

Landlords who want to avoid competing with regions where supply is surging should be wary of Warwickshire and Oxfordshire, if research from debt advisory firm Sirius Property Finance is anything to go by.

Warwickshire and Oxfordshire were the two counties seeing the biggest influx of new builds in 2020/21 compared to existing housing stock.

The 3,050 homes built in Warwickshire during 2020/21 is equivalent to 1.16% of the existing property market, while Oxfordshire wasn’t far behind (1.15%).

Cambridgeshire (0.99%), Buckinghamshire (0.95%) and Wiltshire (0.92%) also rank amongst the counties seeing the most building.

Nicholas Christofi, managing director of Sirius Property Finance, said: “The nation needs more housing and while some areas may have been marked as housebuilding hotspots, the real impact of this housing delivery can’t always be established based on top line completion figures alone.

“When viewing build completions against the wider context of overall market size, we can get a better idea of where has seen the biggest boost to the property market in terms of the number of new homes being delivered.”

For investors who want to own properties in regions where new supply is limited, Yorkshire and the Humber saw the lowest level of new homes delivered on an annual basis in relation to the total size of the market. The 13,390 homes built across the region equate to just 0.54% of the total property market.

The East Midlands and East of England also saw some of the largest levels of homes built in the context of their respective property markets sizes. The 14,230 homes built in the East Midlands and the 18,310 built in the East of England both equate to 0.67% of total market size.

Across England, 155,950 new homes were built in 2020/21, equating to 0.63% of the nation’s property market.

Landlords typically avoid purchasing new builds, because they lose value quickly after being purchased.

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