Estate agents experience 'biggest supply shortages for seven years'

Posted: 13 Mar 2007 13:58:18 GMT

Potential buyers on the housing market are in stiff competition for properties as a new survey reports a shortage in housing supply

Potential buyers on the housing market are in stiff competition for properties as a new survey reports a shortage in housing supply.

The Royal Institution of Chartered Surveyors (Rics) reported that supply on the housing market is at the lowest level seen for seven years.

New instructions to estate agents have remained at the same level for the past nine months

Houses on the market are still selling, as the stock of unsold property on surveyor's books fell to the lowest levels since July 2004.

However, some buyers are concerned about Bank of England interest rate rises pushing mortgage repayments beyond their financial capabilities.

RICS spokesman Ian Perry, said: "Market conditions remain tight but greater awareness of HIPs, in the run-up to their introduction, might push more property onto the market in the coming months increasing choice for the short term."

Industry analysts predict that there may be a further interest rate rise in the coming months, as the Bank of England tries to align inflation with government targets.



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