Number of house hunters in the UK reaches six year high

The number of house hunters in the UK has reached its highest level since May 2007 as the supply of properties falls to a six year low, according to the National Association of Estate Agents (NAEA).

Figures from the NAEA December Housing Market Report show a 14.4% increase in the number of house hunters registering with NAEA agents during December, bringing the total to 334, the highest since before the financial crisis, and up from an average of 292 in November 2013.

However, the supply of properties declined once again, making it the third consecutive month to report a fall in the number of properties entering the market. There was a 7.9% fall from an average of 51 properties available for sale in November to 47 in December, the lowest number recorded since July 2007 when it was 45.

Despite the influx of house hunters on the market, sales fell by 33.3% in December. NAEA members reported an average of six sales in December whereas November sales stood at an average of nine per branch. The NAEA said that this was the lowest figure recorded in the whole of 2013, but remains consistent with agents traditionally reporting a drop in sales during the festive period.

NAEA members also reported that an average of three percent of properties sold in December were bought by people purchasing a house using the government’s flagship Help to Buy scheme.

There was also a reduction in the proportion of first time buyers purchasing homes, falling from 28% of all home buyers in November to 26% in December. But the NAEA said that this figure remains encouraging considering the tightening of supply in the housing market.

It was once again the 31 to 40 year old buyers who were leading the way, making up almost half, 49%, of all home buyers, increasing from 43% in October. The 41 to 55 year olds were close behind accounting for 40% of all sales and the youngest group of 18 to 30 year olds represented just 5% of all home buyers in December.

The data also shows that 88% of properties were sold to couples in December, remaining the most popular method of purchasing a home. Some 9% were sold to people buying a home as an individual and 1% to those buying jointly with a friend or sibling, most likely an option taken to pool funds for a deposit.

‘The increase in house hunters during December was a welcome surprise at a time where agents usually expect activity to slow down. The multiple media reports predicting price increases in 2014 could have played a part as buyers try to beat the rush,’ said NAEA president Jan Hÿtch.

‘It is encouraging to see that first time buyers remained strong in December, but the continued tightening of supply in the housing market is a genuine concern. The number of properties entering the market is now at a six year low which means competition for the best properties will be fierce in many areas,’ she explained.