Property demand 'outstripping supply'

Friday, November 6th 2009

Demand for property is outstripping supply around the UK, according to a new report from the National Association of Estate Agents (NAEA).

The organisation said that the average estate agent branch had 287 house hunters and 57 properties on its books last month.

This in turn is helping to push up house prices, it added.

In October, the gap between asking and selling prices was 8.8 per cent, down from 10.9 per cent in the previous month.

Almost a quarter of the sales made last month were accounted for by first-time buyers.

"There is strong demand for property and more optimism in the housing market than we have seen for months," commented Gary Smith, president of the NAEA.

He called on the government to maintain this momentum by extending the stamp duty holiday.

According to Halifax, the average cost of a property in the UK was £165,528 in October.