The number of available homes to buy has declined by 0.6 per cent but demand has shot up by 10.2 per cent over the last six months, new figures have shown.
According to mortgageintroducer.com, it is believed that improving confidence in the housing market has helped push housing demand up. Government scheme Help to Buy and low mortgage rates have provided a particular incentive for buyers, as purchasing a house has become much more affordable in the past six months.
The lack of available homes has helped push prices up too. Figures from Hometrack showed the average house price has risen by 3.8 per cent, compared to the same time last year, reports thisismoney.co.uk.
Richard Donnell, director of research at Hometrack, said that supply and demand differs according to each area.
“London and the South East have the greatest supply/demand mismatch and have seen house prices grow by 4.8 per cent and 3.2 per cent respectively,” he stated. “In contrast northern regions have negligible imbalance and price rises have been less than 0.5 per cent over the last six months.”
On average, a home takes eight and a half weeks to sell but London homes are going much faster, spending only three and a half weeks on the market.