A shortage of property at the lower end of the market is causing problems for first time buyers and forcing them into a rethink says TEAM’s national chairman who also warns of a danger of the market overheating if current levels of price increase are sustained.

The high level of enquiries from buyers has produced a further jump in house prices the firm says and their latest national survey shows that nation-wide the average price of homes “under offer” was £184,248 in mid-April compared with £178,639 in March, an increase of 3.1%. On average, properties are 14.3% more expensive than 12 months ago.

The survey is based on data supplied by 558 offices of TEAM members in 16 regions across England and Wales. It reflects a daily average of 5,657 homes listed as under offer by agents in the four-week period to mid-April.

TEAM’s national chairman, Philip Muzzlewhite, commented: “The upward trend which followed a quieter December has now gone into overdrive and threatens to overheat the market unless something checks it. The shortage of lower end property is forcing more and more first time buyers into a rethink.”

Competing offers

Jim Atkins, a past president of the National Association of Estate Agents and a TEAM member based in Dorset, said: “We experienced competing offers for the same properties, achieving sales prices in a number cases at or very close to the asking price.”

He added: “Although prices continue to rise, some less professional agents are overvaluing in order to achieve instructions. Sellers should realise that an overpriced house just will not sell, and, if viewings are few, the asking price should be considered.”