Property demand reaches eight-month high
Demand for property in the UK has reached the highest level seen in eight months.
The latest research from the National Association of Estate Agents (NAEA) shows its members served an average of 383 house hunters per branch over the course of May. This is the highest figure recorded since September 2014 and is up from 344 a month earlier.
When it comes to sales, an average of nine deals were completed at each branch during May, compared to eight in April.
Mark Hayward, NAEA managing director, stated: "There’s been a significant jump in the number of house hunters searching for properties this month, no doubt because the uncertainty of the market following the election has worn off and confidence has returned."
However, Mr Hayward also warned that a shortage of housing supply remains a pressing concern.
The average NAEA branch reported having 46 properties for sale in May, which is up from 43 in April. Yet, when compared to May 2005, the number of available homes has nearly halved, while demand has remained at a similar level.
"The housing shortage will not be solved anytime soon, so as pressure mounts we will no doubt see increases in house prices, making it harder for those stepping on or up the ladder," Mr Hayward commented.
David Cameron's government has pledged to build 200,000 new homes annually to tackle this issue. However, whether the Conservative party will be able to deliver on this promise remains to be seen.
The NAEA research coincided with an AA Home Membership study that found one in five homebuyers end up regretting their choice of property. Not getting on with the neighbours and coming across unexpected problems are the main issues that lead to people feeling this way.
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