Demand for UK homes hits highest for 8 months

Demand for UK homes hits highest for 8 months

Supply may have dipped to a level that has experts calling for the government to do more to bring more houses into the market, but this hasn't stopped buyers looking to bag themselves property in 2015. According to the latest reports, demand is now at its highest level for some eight months. 

The figures from the National Association of Estate Agents (NAEA) showed that across the course of the last few months, demand has been climbing steadily. And now, it said, there are 383 house hunters registered on average per branch as of the end of May.

This represented something of a jump from April, when the average number per branch sat at just 344. It now means that demand among buyers is at the highest since September 2014, with more and more people either looking to get onto the ladder or move up it. And with the year's two busiest periods still to come, it could well be the case that demand continues to grow further. 

On a year-on-year basis, the study also found that property demand has climbed to its highest in a decade. No May has performed better in terms of the number of home seekers since 2005, when there were 386 buyers on average per branch. 

"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," said Mark Hayward of the NAEA. 

"However, supply does not meet the rise in demand, and as consumer confidence grows we will continue to see a widening of the property gap. The housing shortage will not be solved any time 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," he added. 

The one positive at the moment is that even though demand still outstrips supply by far, there has still been an increase in the number of homes coming to market in the last month. In May, the average branch had 46 homes for sale, compared to just 43 in April.