Buyers paying over the odds for properties
Figures from the NAEA January Housing Market Report indicate a lack of property supply, yet the average number of sales in January increased by a third.
Some 12% of properties have sold above their asking price so far this year compared to 7% in September 2013. Meanwhile 32% were sold for their asking price, up from 22% last September.
The results indicated that there are eight buyers for every property on the market.
Jan Hÿtch, president of national association of estate agents, said: “Supply has once again dropped and the competition for the best properties is really heating up.
“The growing number of house hunters in the market is causing buyers to react by offering asking price or over in many instances.”
January is the fourth consecutive month to show a drop in the number of properties available in the housing market and represents the lowest figure seen since July 2007.
On average 4% percent of properties were sold per branch using the Help to Buy scheme.
Hÿtch added: “The important first time buyer market also remained strong in January, but if competition for property continues to grow and the issue of supply persists, many would-be buyers may find themselves being priced out.”