The housing market is crying out for more properties to sell, says Doncaster Agents Johnsons

House prices look set to continue beyond the reach of first-time buyers, as a surge in demand for property in Yorkshire and Humberside is outstripping supply.

This is the top line finding of the UK’s largest group of 740 independent estate agents – Home Sale Network – with almost three-quarters (73%) of respondents to its quarterly property survey reporting that buyer enquiries have soared in the past three months.

In Yorkshire and Humberside, 74% of respondents reported an increase in buyers with 10% saying buyer enquiries had decreased and only 16% saying that enquiries remained static.

Even allowing for the traditional strength of the market in the first three months of a year, this figure is a dramatic increase of 32% OVER THE SAME PERIOD IN 2003, WHICH ONLY SAW 42% OF Home Sale Network members reporting an increase in buyer enquiries.

While the number of buyers entering the market in Yorkshire & Humberside has increased considerably, the number of people putting their homes on the market has fallen by 12%, with only 78% of members saying they have seen an increase in vendors this year, compared to 90% last year.

Nationally, there are now almost 6 potential buyers (5.8) for every home listed by Home Sale Network estate agents. This is an increase on the same period in 2003, which indicated there were only 4 applicants to every listing.

Neil Harrison, of Home Sale Network’s appointed member firm Johnsons, said: “This is usually the time of year when people typically put their house on the market, but we have been experiencing an increase in buyers and lack of homes for sale.

“Although the detailed results of our latest quarterly survey show some interesting regional variations, the overall picture shows a continued move to a seller’s market, and it seems that, despite rising interest rates, all regions are seeing demand outstrip supply”.

“Our latest survey findings do not make good reading for first time buyers. The continuing decline of sales to first-time buyers has to be an issue of national concern. Despite Government initiatives and the recent Barker Report, the fact remains that house builders are producing less new stock than at any time for decades” he added.

Other Yorkshire and Humberside findings of the survey include:

• The proportion of house sales to first-time buyers is now down to just 13.5%

• Most buyers (60.6%) are “simply moving home in the same locality”, 8.4% are relocating from another area; 20.3% are “buy-to-let” purchasers; 4.1% are buying a second home; and 3.7% are buying as investments for refurbishment or restoration.

National findings include:

• The average time for a property to go from market to offer is six weeks.

• The average number of viewings a vendor can expect before an offer is made is 10. This is the same as the spring survey in 2003.

• 60% of buyers are between 36-45 years of age, followed by the 26-35 year olds at 25%.