There has been a significant increase in demand for property as the stamp duty holiday continues to act as an incentive to enter the market.

The number of prospective purchasers rose by 40% in January compared with a month earlier, while the supply of properties also increased, albeit at a slower pace.

In January, the average number of prospective buyers registered per estate agent branch stood at 487, up from 348 in December, and 27% higher than the 382 purchasers registered in January last year.

Lat month, more than a quarter – 26% – of property transactions took over 17 weeks from the offer being accepted to exchanging contracts.

Meanwhile, the average number of sales agreed per estate agent branch stood at 10 in January, an increase from eight in December. This is the highest figure recorded for the month of January since 2007, when an average of 13 sales were agreed per branch.

As for the supply of available properties, the number of homes available per member branch stood at 38 in January, rising from 33 in December.

Finally, 9% properties sold for more than the original asking price last month, up from 5% in December 2020.

Mark Hayward, chief policy advisor, Propertymark commented: “The number of house hunters hitting the market in January shows the stamp duty cut has continued to encourage buyers. However, with an average of 13 house hunters for every property on the market, there is simply not the supply to meet this level of demand.”

He added: “Extending the holiday until June will create another cliff edge. We know from our own research that the majority of estate agents expect to see an increase in the number of failed sales if the stamp duty holiday ends at a cliff edge so we need government to consider a tapered end to the holiday so that buyers aren’t forced to pull out at the last minute and the property market can continue to thrive.”