The number of house hunters has reached its highest level since May 2007 as the supply of properties falls to a six year low, according to the National Association of Estate Agents (NAEA).
Figures from the NAEA December Housing Market Report show a 14.4 percent increase in the number of house hunters registering with NAEA agents during December, bringing the total to 334 – the highest since before the financial crisis – up from an average of 292 in November 2013.
However, the supply of properties declined once again, making it the third consecutive month to report a fall in the number of properties entering the market.
Figures from the NAEA Housing Market Report reveal a drop of 7.9 percent, down from an average of 51 properties available for sale in November to 47 in December – the lowest number recorded since July 2007 (45).
Despite the influx of house hunters on the market, sales fell by a third (33.3 percent) in December. NAEA members reported an average of six sales in December whereas November sales stood at an average of nine per branch.
This is the lowest figure recorded in the whole of 2013, but remains consistent with agents traditionally reporting a drop in sales during the festive period. NAEA members also reported that an average of three percent of properties sold in December were bought by people purchasing a house using Help-to-Buy.
There was also a reduction in the proportion of first time buyers (FTBs) purchasing homes, falling from 28 percent of all home buyers in November to 26 percent in December. This figure remains encouraging considering the tightening of supply in the housing market.
And it was once again the 31-40 year olds leading the way making up almost half (49 percent) of all home buyers, increasing from 43 percent in October. The 41-55 year olds were close behind accounting for 40 percent of all sales and the youngest group (18-30 year olds) represented just five percent of all home buyers in December.
Jan Hÿtch, President of National Association of Estate Agents, said: “The increase in house hunters during December was a welcome surprise at a time where agents usually expect activity to slow down. The multiple media reports predicting price increases in 2014 could have played a part as buyers try to ‘beat the rush’.
“It is encouraging to see that first time buyers remained strong in December, but the continued tightening of supply in the housing market is a genuine concern. The number of properties entering the market is now at a six year low which means competition for the best properties will be fierce in many areas.”
