The rise in the number of house hunters means there are now 11 buyers chasing every property.
According to the National Association of Estate Agents, the average number of prospective buyers registered per member branch in January was 425, up 10% from December 2016.
Meanwhile, the number of properties available to buy on estate agents’ books in January was 38, down from 41 in December and the lowest recorded since July 2016.
The increase in house hunters and decrease in properties means there is an average of 11 buyers chasing each property.
In January, three in 10 sales were made to first-time buyers, a slight decrease from December when 32% of sales were made to the group.
More than one in every 20 properties sold for more than the original asking price in January – the highest amount since April 2016 when 9% sold for more than asking price.
Mark Hayward, chief executive of NAEA Propertymark, said: “January saw a surge in buyers looking to kick off the New Year with a new home – but competition is rife with an average of 11 buyers chasing each property.
“The increase in the number of properties selling for more than asking price in January could be a result of heightened interest and the fact there is simply not enough housing to meet demand. When the Government issued their housing white paper at the start of February we stated how important it was for the industry to put forward robust solutions to really make a difference and it’s vital that building more affordable housing is at the very top of their agenda.”
Separate figures from property website Rightmove point towards the housing market stalling.
The annual rate of house price growth was 2.3% in February – the lowest since April 2013. Rightmove put this down to rising cost of living, tighter lending criteria and Brexit uncertainty.
The price of property coming to market went up 2.0% in February to £306,231, the smallest price rise at this time of year since 2009.
Nationwide predicts annual house price growth will fall to around 2% this year as the economy weakens, while Halifax expects it to be between 1% to 4%.
