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Housing demand at 11 year high: NAEA

Housing demand at 11 year high: NAEA

The number of house hunters registered per branch in June was the highest recorded in 11 years, data from the National Association of Estate Agents has revealed.

The NAEA’s June housing market report, published today (27 July) found that 439 house hunters were registered on average per NAEA member branch in June.

This was 15 per cent more than in May when 383 house hunters were registered per branch and the highest since August 2004 when 582 were recorded.

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Supply of housing stock fell marginally from May, to just 44 houses available per branch, compared to 46 in May, which the NAEA said was widening the gap between supply and demand.

The NAEA said that as the gap between supply and demand widened, activity remained consistent, with nine sales made on average per branch for the second month running.

The number of sales made to first-time buyers in June declined, however, with the group accounting for just 24 per cent of sales compared to 29 per cent in May.

Mark Hayward, managing director at the NAEA said: “What we’re seeing is a market that lulled over the general election period, coming back to life in full force.”

He added that buyers are feeling more confidence and those who put their plans on hold over the election and political aftermath have kicked off their hunt, causing the massive jump in demand.

“There’s also an impetus to buy right now in light of the impending interest rate rise as buyers fight to buy and fix mortgage rates. But the fact that demand is at an eleven year high without the housing stock to fuel it, is bad news for the market.”

Mr Hayward added that the growing gap between supply and demand is worrying and clearly demonstrates that more needs to be done.

“The election was full of promises to build more houses, but now those promises need to be put into bricks and mortar to respond to demand.”

ruth.gillbe@ft.com