Five house hunters for every property, says NAEA
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Estate agents are registering applicants at a ratio of five house hunters for every available property, according to the National Association of Estate Agents.
The figures show the extent to which demand is outstripping supply.
The average estate agency branch had 287 house hunters on its books in October competing for an average of 57 properties.
In September 294 house hunters were fighting it out for 62 properties on average per branch.
Demand has pushed up house prices, with the gap between asking and selling prices falling from 10.9% in September to 8.8% in October.
But the rise in demand did not translate into a boost in sales.
Estate agents sold an average of eight properties in October per branch, compared to nine in September.
The proportion of first-time buyers also fell from 26% in September to 22% last month.
Yet the NAEA points out that this level of first-time buyers is more than double the number recorded at the same time last year.
Gary Smith, president of the NAEA, says is encourage by the demand for property, but says the government needs to do more to keep the momentum of recovery going.
He says: “A good place to start would be for the government to extend the Stamp Duty holiday, which mainly affects first-time buyers, and is currently scheduled to end in December.
“The danger is that this short-sighted policy could precipitate an unwelcome pause in the housing market at the start of the new year.
“We can only hope that common sense will prevail and that the government will raise the lowest level at which Stamp Duty will apply to £175,000 for an indefinite period.”
