Estate agents are reporting that property supply is still at under half the rate of before the financial crisis, the Bank of England says.

The Bank’s Summary of Business Conditions publication for the first quarter of 2017, based on data from its regional agents and interviews with local businesses, reflected other reports of rising demand and low supply, with most activity around first-time buyers.

It says: “There were signs of gently rising demand for housing, outstripping the number of properties available for sale overall.

“Some estate agents noted the number of properties on their books was less than half pre-crisis norms.”

Bank agents report that demand was supporting low house price growth, but there are regional differences.

The report says: “In London, house price inflation had eased significantly and properties were taking longer to sell.

“More generally, activity was relatively stronger in lower price segments. This was especially the case among first-time buyers, and in new-build.

“But activity was depressed for houses over £1m.”

Meanwhile the mortgage market remains vibrant, but mainly boosted by remortgages.

The document states: “Contacts reported that the mortgage market remained highly competitive, with a further increase in credit availability, including at higher LTVs.

“Lending activity was being sustained by higher levels of remortgaging as borrowers looked to lock in low rates. New buy-to-let lending had slowed, due to weaker demand and a tightening of underwriting conditions by some lenders.”