Housing demand soars to 11-year high – but where’s the supply?

Housing demand is at an 11-year high, the NAEA has claimed.

It says that in June, the number of applicants registered per branch was the highest since August 2004.

The NAEA’s monthly report found 439 house hunters were registered on average per NAEA member branch in June, 15% more than in May.

Despite the jump in demand, supply of housing stock fell from 46 in May to 44 in June per branch.

Mark Hayward, NAEA managing director, said: “What we’re seeing is a market coming back to life in full force.

“Buyers are feeling more confident and those who put their plans on hold over the election and political aftermath have kicked off their hunt, causing this massive jump in demand.

“There’s also an impetus to buy right now in light of the impending interest rate rise as buyers fight to buy and fix mortgage rates.

“But the fact that demand is at an 11-year high without the housing stock to fuel it is bad news for the market.”

There are however growing signs of unaffordability for first-time buyers. According to the NAEA, sales to first-time buyers accounted for 24% of transactions, down from 29% in May.

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