The housing market is still underpinned by high demand, despite a growth in supply, according to Propertymark.

The trade association for the property market said supply has been boosted this year, with the number of available properties per estate agent branch having risen by 47 per cent from December, to 28 properties on the books in August.

New instructions were up to 11 per branch last month.

Demand driving market

However, demand has grown even faster, rising 79 per cent over the same period to 86 prospective homebuyers registed per branch in August.

In August, just 27 per cent of properties had a sale agreed below asking price, added Propertymark.

Nathan Emerson, CEO of the organisation, said: “The number of people wanting to buy is still good, and the number of properties available to buy is recovering from the mad dash we had before.

“Buyers and sellers alike are aware of cost-of-living increases and interest rate rises. There are those of a generation who will remember much higher rates but there is a new wave of buyers who won’t have seen these levels before that will become more cautious with their budget.”

Rental sector

The rental market also saw high demand from tenants in August, pushing up rents. Over three-quarters (77%) of letting agents saw rents rise last month.

Propertymark said that the number of new tenants registered per lettings branch reached a new peak at 141 in August, but supply of available homes to rent has not risen in the last three months. It suggested that this ‘growing mismatch between supply and demand’ will send rents even higher.

Emerson added: “In the rental market, we see a pressure cooker getting hotter. The government seem to be missing every opportunity to re-evaluate costs for landlords.

“Whilst this isn’t the most sentimentally attractive conversation for politicians, it must be understood that if investment doesn’t work for landlords, ultimately tenants are severely impacted by a lack of choice and high rent prices.”