Research conducted by the National Association of Estate Agents (NAEA), showed that housing supply was at its lowest level since January 2004, and far down on July where an average of 55 properties were available per branch.
While the number of house hunters registered at estate agents fell by 12% to 408 per branch in August, the number of sales rose to an average of 10 properties, compared to July.
However, sales made to first-time buyers decreased to the lowest level since July 2014, with 20% of first-time buyer sales conducted in August, compared to 23% in July and 24% in June.
Mark Hayward, managing director, National Association of Estate Agents, said: “We’ve been banging the drum about the dwindling supply of housing for a while and this month’s report reiterates what we’ve been saying – there simply aren’t enough houses to match demand and we’re reaching crisis point.
“There are now eleven house hunters fighting after every available house which isn’t sustainable. First time buyers are finding themselves being squeezed out of the competition, which of course means it’s taking young buyers longer to get their foot on the first step of the ladder, which will in turn increase pressure on the rental market.”
