The National Association of Estate Agents (NAEA) says prices are being pushed up by continuing high demand from housebuyers. There is currently an average of 12 buyers for each property that agents have for sale.

This seller’s market is reflected in the low discounts achieved off asking prices, with homebuyers paying only 2.93% less on average than the asking price, compared to an average of over 4% throughout 2003 says the report.

However, high prices across the board are pushing first time buyers out of the market, as the percentage of total sales fell to less than 14%, down from 18% in April last year.

No crash – but some agents expect dramatic slowdown

Two thirds of estate agents do not believe that the housing market will crash in the foreseeable future, however one third are expecting a dramatic slowdown before the end of 2005.

Agents believe rising interest rates (46.3%), the slowing down of the buy-to-let market (19.5%), terrorism (9.8%) or media speculation (9.8%) could prompt this.

Melfyn Williams, President of the NAEA, comments: “As the weather is hotting up so is the housing market, with strong annual and monthly price increases recorded across the country yet again this month.”

“With prices continuing to rise there is inevitably talk of a crash. However it is looking unlikely that we will see dramatic falls this year, and when the market eventually slows down it will be a softer landing than the spectacular crash predicted by some doom mongers.”