Four potential buyers for every home for sale

Thursday, 18, Jun 2009 09:28

There are four house hunters, for every property for sale, according to estate agents.

Demand for property is rising faster than supply, with the number of house hunters registered with estate agents increased from 265 in April to 299 in May.

But the average branch has fallen to 69 properties for sale in May, from 76 in April.

The figures back analysts' claims the recent rise in house prices are based on a rise in interest from buyers in a market where homeowners are reluctant to put their home up for sale, leading to demand outstripping supply.

Gary Smith, president of the National Association of Estate Agents (NAEA), said: "NAEA members are showing that there are buyers a-plenty out there. More often than not these are also potential sellers who are at the beginning of the process - so there is bound to be a lag which creates a shortage of properties in the short term.

"With mortgage interest rates at historically low levels and prices now far more realistic than in previous years, home ownership in the UK seems to be set to lead the way out of the recession."

Buyers are still able to negotiate a discount, however, with the average selling price 6.3 per cent below the actual asking price.

The survey also found the number of first time buyers (FTBs) increased to 43 per cent in May - a significant increase on last month's 23 per cent.