Demand far exceeds supply

While the signs are pointing to a recovery on the housing front, the lack of new properties joining the market place is causing concern.

Results from the last monthly survey from the National Association of Estate Agents show a drop in the amount of properties available for sale with UK agents in October. The amount of would be buyers registering also fell slightly from September but figures show for every property listed there are up to 5 prospective purchasers.

House prices are creeping up due to the lack of supply. More than 20% of properties sold in October went to first time buyers which are twice as many as October 2008.

First time buyers are seen as the very foundation of property sales and many in the industry feel the stamp duty holiday introduced by the government, due to finish in December, needs to be extended to encourage market recovery throughout 2010.