We have seen panic buying at the petrol pumps in the last 10 days with many garages running out of fuel. It has been a supply and demand issue with some of the UK population filling their cars up, unnecessarily fearing a fuel shortage. There hasn’t been a fuel strike confirmed, yet after the government suggested people should fill up ‘jerry’ cans in case they ran out of fuel, fuel buying exceeded the supply.
Estate agents across the UK would welcome panic buying in our industry. Unfortunately, in most areas of the UK supply of properties outweighs demand. This, coupled with the tight lending criteria set by the banks, means that panic buying is not common in the UK market! However, properties in certain areas can still sell quickly, with a good number of people looking to buy them. Findahome Online Estate and Lettings Agents have, in recent weeks and months, sold properties within days of them coming onto the market.
Houses and fuel are commodities with supply and demand affecting prices.
People need somewhere to live and they need fuel in their cars. The difficulty buyers have had getting mortgages in the last few years has resulted in more people moving into rented accommodation. An alternative to putting fuel into our cars is not really available at the moment as electric cars have not really taken off. Until a credible alternative appears, fuel will always be in demand.
The UK housing market has seen panic buying in the past. I remember in 2002 – 2004, people were literally buying any houses, where I was working at the time, in order to let them. The prices of properties in my area of Stoke-on-Trent rocketed and the demand soared. Panic buying was very much in evidence as people jumped on the buy – to – let bandwagon.
Panic buying of fuel when prompted will continue, as well as when we get a bit of snow on the ground bread sales go through the roof!
I would not welcome panic buying again in the housing market. What I would like to see is easier lending from the banks so that people can get mortgages. A stable market where properties are moving is far better than a panic stricken market where prices soar.