As the supply of homes for sale remains low, one in five buyers is paying more than the asking price to secure their dream property, according to the National Association of Estate Agents.
The NAEA’s May Housing Market Report shows that the supply of houses for sale has dropped by 27 per cent since this time last year, meaning buyers have been forced to increase their asking price to beat of competition.
The report also found that in May, semi-detached homes remained the most popular choice for buyers, with over a third of house hunters seeking this type of property. Nearly half of buyers (49%) were looking to up-size.
The report said: “The first priority must be to build more market and social housing so that more homes are available to rent and buy overall
“Towns and cities with an appetite for growth should be given new powers to unblock stalled sites so that land can be used for housing, including designating ‘new homes zones’ that fund development by capturing the resulting increases in land values.
“Councils should be able to retain and reinvest a share of any savings achieved by local action to reduce housing benefit spending in their area. In addition to their existing powers, they should also be given greater freedom to borrow responsibly against their housing assets and income
“Local areas entering into an earn-back deal with the Treasury should be able to determine the level of housing benefit available in the private rented sector, to prevent landlords overcharging the taxpayer in low-cost areas.
Housing capital budgets should be devolved to combined authorities that have agreed strong joint working arrangements.”