There are now eight buyers competing for each home for sale in the UK, according to Sequence, owners of several estate agents.
The figure is a rise of 26 per cent compared to last year, while the average house price has increased by 12 per cent annually to £207,412, despite a monthly dip of 1 per cent.
In London house prices rose by 22 per cent annually to £441,256, despite also experiencing a monthly drop, which was 4 per cent in the capital.
Mortgage applications from first time buyers rose by 7 per cent month on month and were up 13 per cent annually as new buyers continue to flood the market, applications for sellers also increases, up 5 per cent and 18 per cent year on year.
David Plumtree, chief executive at Sequence, said: “Activity in the market and competition for property across the country is heating up as we edge closer to spring. Fuelled by attractive mortgage products, the number of new buyers registering has risen by over a quarter annually (26 per cent) and there are now eight buyers (7.7) chasing every new instruction. The shortage of available property is resulting in rapid price growth, with the average UK house price now 12 per cent higher than this time last year and showing no signs of slowing down unless the supply/demand imbalance is rectified.
“In London over 13 new buyers (13.5) continue to compete for every new instruction, with the number of new buyers registering increasing by a quarter, annually. The number of new instructions is rising by just 13 per cent as prices continue to grow, up 22 per cent annually.
“With the Government’s redirection of finance from the Funding for Lending Scheme and interest rates expected to rise sooner rather than later, homeowners considering selling should seize the window of opportunity now.”
Loading ...