Housing demand reached an eleven year high in June as property supply levels continued to fall, the National Association of Estate Agents (NAEA) has reported.
The Association's latest Housing Market Report found an average of 439 home hunters registered with the average NAEA member branch, a 15% increase on May's figures and the highest recorded since August 2004.
Despite ever-increasing demand, supply of housing stock has fallen from 46 houses available per branch in May to 44 in June.
The number of sales made by estate agents remained consistent in June, with the average branch making nine transactions – the same figure recorded in May.
The number of sales made to first-time buyers declined in June, however, with the group accounting for just 24% of sales, compared to 29% the previous month.
“What we’re seeing is a market that lulled over the General Election period, coming back to life in full force. Buyers are feeling more confident and those who put their plans on hold over the Election and political aftermath have kicked off their hunt, causing this massive jump in demand,” comments Mark Hayward, managing director of the NAEA.
“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,” he adds.
Hayward says that despite the lack of supply and heightened demand, it is promising that transaction levels have remained consistent and houses are still being sold.
“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,” he says.