Hamptons international says that demand for property continues to outstrip supply and considers that potential vendors are still holding back.

The firm’s property portfolio remains 8% lower than last year, underlining the shortage of quality stock in the market, they say. However, they continue to predict a surge of fresh stock within the next few weeks.

Price rises in the £500,000-£2,000,000 bracket are sustainable as they are only slightly above previous highs reached in 2001, but prices below £250,000 are now well above the corresponding levels.

Following strong increases in market appraisals in February and March Hamptons report 30% more potential vendors in April than last year – but 11% fewer than in March (probably due to Easter). However, many of these are sitting on the fence and are not yet converting into new stock for sale. Says Hamptons’ Mary Robinson, “New instructions are healthy and consistent in number, but not the great surge that had been expected.”

David Adams, Country Sales Director said, “Financial markets and company profits are improving to the extent that we have a very large pool of buyers moving from London to the country with plenty of bonuses to invest.”

However, Adams is concerned about price rises in the market below £250,000, as house prices are now well above the levels achieved in 2001. He points out that the prices of homes across many villages and towns in Southern England are now simply out of reach of the traditional first time buyer.

“The question is whether, with our borders now open to Europe, the flood of immigrants may contribute to demand and sustain these prices?” continues Adams.