Demand continues to outstrip supply according to property analysts

By Rachel Bishop on May 11, 2014 5:25 PM |

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The demand for housing is continuing to surpass supply according to residential property analyst Hometrack's latest survey which was published this week.

In April throughout the UK there was a 3.3% increase in demand compared to a 1.9% increase in supply.

For the last six months this imbalance has been evident, with prices increasing across 48% of postcodes outside London over April.

Richard Donnell, director of research at Hometrack, said: "House prices increased by 0.6% in April, unchanged over the month.

"Demand continues to grow faster than supply which is underpinning the upward pressure on house prices.

"London continues to register above average growth of 0.8% but market conditions continue to strengthen in the regions outside the capital as well, particularly in southern England. Nationally, the average time on the market is down to 6.3 weeks, the lowest since June 2007.

"While the outlook is for further price increases there are emerging signs of growing price resistance in London that could check the rate of house price appreciation in the coming months.

"The continued improvement in market conditions across the wider housing market is demonstrated by prices increasing across nearly half of postcodes outside London over April.

"This is the highest coverage of price rises for a decade."

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