Demand for property in May hit an eight-month high, according to the National Association of Estate Agents, however property supply is not keeping pace.
According to NAEA’s latest report, 383 house hunters were registered on average per branch in May - compared to 344 in April - and the highest number recorded since September 2014, when 406 house hunters were registered.
Last month also witnessed the highest year-on-year demand for 10 years, when 386 house hunters were recorded per branch.
Supply of housing also increased marginally from last month, with 46 houses up for sale per NAEA member branch, compared to 43 in April. While demand for property was at similarly high levels to May 2005, supply has almost halved year-on-year over the ten years, when 81 properties were available to buy.
As supply and demand levels have risen, the number of sales per member branch also rose slightly from last month, with nine sales agreed in May, compared to eight in April. Sales to first- time buyers increased in May, jumping from 26 per cent in April to 29 per cent of sales in May.
Mark Hayward, managing director at NAEA, said that the jump in the number of house-hunters searching for properties was due to the uncertainty of the market following the election has worn off and confidence has returned.
“However, supply does not meet the rise in demand, and as consumer confidence grows we will continue to see a widening of the property gap.
“The housing shortage will not be solved any time soon, so as pressure mounts we will no doubt see increases in house prices, making it harder for those stepping on or up the ladder.”
On Friday (26 June), Land Registry data revealed that annual house prices increased 4.6 per cent for the 12 months to May, with average house price in England and Wales at £179,696 in May.
peter.walker@ft.com
