A third of sales in December were made to first-time buyers – the highest number for the month since 2001.
The number of house hunters also rose to the highest level seen for the month since 2003 in December.
According to the National Association of Estate Agents, the number of prospective buyers registered per branch last month was 386, a 12% rise from November when estate agents registered 344 on average.
This is also a 10% increase from November when 29% of sales were made to the group.
The number of properties available to buy on estate agents’ books in December was 41, slightly up from November when there were 39.
Despite an increase in supply and demand, the number of sales agreed dropped by 25% last month from eight in November to six in December.
Mark Hayward, managing director of the NAEA, said: “In November we saw a seasonal slowdown. Typically it’s uncommon for people to buy and move close to Christmas. Yet, our December findings have completely bucked this seasonal trend. With demand at an all-time December high and sales to FTBs at their highest on record, 2016 closed on a positive note following several months of uncertainty.
“However, despite an encouraging December, there remains a clear shortage of homes. We await the government’s housing white paper to see how it intends to tackle this and hope the market continues to improve for both buyers and sellers.”
