The latest report from the National Association of Estate Agents (NAEA) has revealed that there are now on average 11 buyers chasing each property for sale.
As a result, a number of properties are selling for over the original asking price.
Figures from the report suggest that there were 425 potential buyers registered per branch during January in comparison to the previous month. Housing stock is also fairly low in comparison.
The volume of properties ready to purchase on estate agents’ books during January stood at 38. This is a slight decrease from December when there were 41 available.
However, the NAEA sold that 76% of properties actually sold in January fetched more than the asking price. The South-West saw the greatest number of properties selling for more than the initial asking price.
Hampshire, Shropshire and the Midlands are the regions with the most house hunters in comparison to number of properties.
More UK properties selling for over their asking price
Mark Hayward, Chief Executive of the recently rebranded NAEA Propertymark, observed: ‘January saw a surge in buyers looking to kick off the New Year with a new home-but competition is rife with an average of 11 buyers chasing each property.’
‘The increase in the number of properties selling for more than asking price in January could be a result of heightened interest and the fact there is simply not enough housing to meet demand. When the government issued their housing white paper at the start of February we stated how important it was for the industry to put forward robust solutions to really make a difference and it’s vital that building more affordable housing is at the very top of their agenda,’ he added.