New Home demand continues to outstrip supply

Each home coming onto the market is attracting an average of five prospective buyers, according to a survey conducted by the National Association of Estate Agents (NAEA).

The study revealed that the average estate agent had 287 people actively looking to buy a new home on its books last month, marginally down from the 294 registered in September. They also recorded a fall in the supply of properties with the average branch having just 57 available, which was down by five on September.

Gary Smith, NAEA’s president, commented: “There is strong demand for property and more optimism in the housing market than we have seen for months. This is good news for the recovery of the market and for the UK economy in general.

“Many buyers are at the very beginning of the house buying process and this is creating a lack of properties in the short term. It is now up to the Government and the banks to do more to keep the momentum of market recovery going. A good place to start would be for the Government to extend the Stamp Duty holiday, which mainly affects first time buyers, and is currently scheduled to end in December.”

NAEA research also shows that the gap between the asking and selling prices had narrowed to 8.8% in October, up from 10.9% in September.

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