Buyer numbers surge by a fifth - with ten for each property

The housing shortage crisis has now reached a point where there are ten buyers for each property. The announcement has come from the National Association of Estate Agents, which added that the number of houses for sale fell in November, while the number of buyers increased 20%.

Mark Hayward, Managing Director, National Association of Estate Agents, said: "It's very normal at this time of year that demand is high and supply is low. House hunters hoping to find their dream property in the New Year have registered interest with agents, whilst those hoping to sell are holding off putting their properties on the market before January. However, supply is outweighing demand so heavily now that it can't solely be attributed to seasonality. It's clear that we're faced with a crisis here: the housing market needs addressing as a matter of urgency."

He added that if nothing is done to check the trend, house prices will have risen another 50% by 2025: first time buyers will be priced out of the market, and second steppers will be trapped in unsuitable starter homes - overwhelmed by their growing family. Already in the latest set of figures, the percentage of sales to First Time Buyers fell 10%.

It means that we could be in a sellers' market for some time to come. If you are planning to buy or sell, it's essential to understand what this means for you.
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What this means for sellers

Sellers are the only people who will be cheered by news of a sellers' market, as they may choose not to entertain lower offers, and may even find their property the subject of a price war - where rival buyers push the price up in their desperation to snap up a property.

Of course, if they are planning to buy afterwards, they will need to consider the fact that buying their next property could be harder than they expected - and they may need to pay more to secure their next property at a time of high demand. They may end up having to inflate the price of their own property in order to deal with a price war on the one they want to buy.

What this means for buyers

It's bad news all round. With so much competition, buyers need to make themselves as attractive as possible to sellers. This means getting your finances in order, with credit scoring completed, references prepared, and a lender happy to lend - subject to a satisfactory survey and legals. If you use a mortgage broker, you can even get them to contact the estate agent to assure them the finances are in place.

If you have a property to sell, get it on the market. If your property is sold subject to contract, sellers will see you are keen to move quickly, which makes you a more attractive option.

In either case, you also need to be hot on the heels of your estate agent, calling regularly about properties, and being willing to view them immediately. If you're keen, you'll be seeing properties first, and have the chance to get an offer in and the property off the market before anyone else is through the door.

It may even be worth being more proactive than this. If you are looking for a particular type of property in a specific area, you can print off letters to homeowners, asking them to get in touch if they are thinking of selling - so they can sell to you without the bother and expense of an estate agent. You can then walk round the neighbourhood, distributing the letters at any home that fits the bill.