Desperate buyers paying over asking prices

Desperate buyers are negotiating at levels considerably over asking prices this year, a leading estate agent reports.

Hamptons International finds there has been frenetic activity in the housing market since the start of 2007, with an "astonishing" number of chain-free buyers going for properties.

This has seen sensibly priced properties sold in hours or days rather than weeks and months, the estate agent says, with an emphasis on compromise over perfection.

In the Thames region Hamptons International finds there has been "huge wave" of activity in the property market, with valuations up 69 per cent, offers up 90 per cent and viewings up 35 since the same time last year.

"The best outcome prospective buyers can hope for is that values 'plateau' at a level that still meets some of their main criteria for moving," explained Giles Soutry, Hamptons International's regional sales director for Surrey/Kent.

In London, the number of properties being valued has also increased, up 21 per cent on last year.

Marc Goldberg, Hamptons International's regional sales director for London commented: "There has been an acute shortage of properties for sale in prime areas of the capital for several months, while demand from buyers has reached record levels.

"Our stock of available property is 33 per cent lower than last year, whilst demand is 22 per cent higher. This is resulting in some very aggressive buying behaviour."

However, in the west of England the estate agent says there are early indications of more of a balance between housing supply and demand in 2007.

"Properties in the West Country continue to provide good value for money and there is an expectation that with an exceptionally strong London market showing no signs of abating, many purchasers will be forced to find a home further afield, seeking out areas that offer excellent road and rail communications," concluded Ursula Sadler, Hamptons Internationl regional sales director for western England.