Regionally, Greater London saw the biggest rise in property supply with a 14% increase of properties going onto the market, whilst Wales saw the greatest drop of 5%. 

These regional variations may be contributed to the recent interest rate rise that helped stabilise the South East and Greater London property market, but had a more detrimental effect on regions to the West and North.

The survey also indicates that at present there is a minor hesitation nationally for individuals to move with a 4% drop reported from last month’s figure. This decrease can be contributed to the rising interest rates and the high costs involved in moving, including stamp duty.

Richard Worrall, Chairman of Team Thames Valley comments:

“Demand is still outstripping supply.  Quality properties in sought after locations are selling within a very short time frame.” 

This echoes the view of many agents who are experiencing a shortage of instructions.  However, properties that are being placed on the market at a realistic price are being snapped up by keen purchasers.

The housing market for first time buyers is still causing a major concern as many young people are still struggling to get a foot on the housing ladder. 

Their plight has not been helped by the recent rise in interest rates, coupled with stamp duty and the ever rising cost of living. 

Estate agents have noted that at present there are a large number of investor buyers in the market place, which is having an impact on the supply of properties available for those who wish to take their first step on the property ladder.

Following Ruth Kelly’s announcement that the HIPs legislation will be delayed until 1st August and then introduced slowly into the market place, Team agents believe there will be a knock on effect for the May market.

Alan Kirkman, Director of Communications at Team, comments: “As an association we were ready for the legislation and simplified the HIPs process for our customers by announcing a blended price ‘No sell, No fee’ in which the client only pays for the pack if they are successful. 

We are obviously shocked that this process has been delayed but feel that despite this announcement, once Hips is implemented it will be of benefit.  We just hope that the government will work with the industry to help ensure the success of the legislation when the day finally arrives that it is fully implemented”.

Source: The Move Channel