The number of customers looking to buy a new home in June 2015 has hit an eleven-year high, the latest National Association of Estate Agents (NAEA) housing market report has revealed.
There were 439 house hunters registered per NAEA branch last month, which was the highest figure seen since August 2004 and was a 15 increase on May 2015.
The soaring demand was met with a meagre supply of only 44 houses for sale per branch, a decline from 46 houses available per branch in May.
Mark Hayward, managing director, National Association of Estate Agents said:
“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. 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.”
Sales to first-time buyers decline
As the gap between supply and demand widened, activity remained consistent, with nine sales made on average per branch for the second month running. However, the number of sales made to first-time buyers declined in June, with the group accounting for just 24 per cent of sales, compared to 29 per cent in May.
Mark Hayward continues: “Although activity is still slow, it’s very promising to see that the surge in demand and dip in supply has not caused activity to halt, and houses are still being sold. However, the growing gap between supply and demand is worrying and clearly demonstrates that more needs to be done to plug this”
