Shortage of property in the UK means eight new buyers after every new instruction

Eight new buyers are chasing every new property instruction in the UK and new buyer registrations have risen by over quarter, according to new research.

The report from Sequence, owners of over 300 branches of estate agents around the country shows just how buoyant the residential real estate market is.

It points out that the average UK house price has increased by 12% annually but did fall 1% in February compared with the previous month. Sales are also rising, up 17% annual and 7% month on month.

According to the firm’s data the average house price is now £207,412. But prices have been rising even more in London, up 22% annually, but they were down 4% month on month. Nevertheless, the average house price in London is now £441,256.

First time buyers are not being put off by the house price rises and mortgage applications from first time buyers were up 7% month on month in February, and up 13% annually. The firm says that new buyers are flooding the market.

Sellers are also boosting the market, and mortgage applications from this group are up 5% month on month and 18% annually.

‘Activity in the market and competition for property across the country is heating up as we edge closer to spring. Fuelled by attractive mortgage products, the number of new buyers registering has risen by 26% annually and there are now eight buyers chasing every new instruction,’ said David Plumtree, chief executive at Sequence.

‘The shortage of available property is resulting in rapid price growth, with the average UK house price now 12% higher than this time last year and showing no signs of slowing down unless the supply/demand imbalance is rectified,’ he explained.

He also pointed out that in London over 13 new buyers continue to compete for every new instruction, with the number of new buyers registering increasing by a quarter, annually. The number of new instructions is rising by just 13% as prices continue to grow, up 22% annually.

‘With the Government’s redirection of finance from the Funding for Lending Scheme and interest rates expected to rise sooner rather than later, home owners considering selling should seize the window of opportunity now,’ he added.