Supply and demand hit six-month high but sales remain flat: NAEA

In September, the number of house hunters registered at estate agents rose to a six-month high of 394 per branch on average.

The number of properties available to buy on estate agents’ books also increased to the highest level seen for six months, from 37 in August to 41 in September.

But despite the fact that both supply and demand for properties increased, the number of sales agreed remained flat, with an average of eight agreed per branch – the same as July and August.

The proportion of sales made to first-time buyers was 23% in September, also the same as the previous two months.

NAEA's research shows that flat sales could be due to the prolonged buying process, as eight in 10 of its estate agents argued that the home-buying process is outdated.

Mark Hayward, Chief Executive, NAEA Propertymark, said: “The Government’s announcement last weekend that it will consult to reform the home-buying process couldn’t come soon enough, and we welcome it. Our findings show that estate agents agree, and would welcome changes to ensure the process for buying and selling is brought into the twenty first century.

"The current prolonged process means sales are stagnating despite the fact that the supply of housing is up, and there is growing demand. Hopefully we will see activity pick up marginally in the short term, when properties which are being marketed now are taken off the market and pushed through, so buyers can be in before Christmas.”