A chronic lack of homes for sale is continuing to drive up house prices with a return of sealed bids and gazumping in some areas. The number of homes on the market has fallen by 1.6 per cent in the past month, however there was a 2 per cent increase in buyers registered with agents.
The situation is giving sellers, particularly those in London and the South East, a strong hand, according to research by Hometrack. It said the percentage of the asking price now being paid by buyers is up to 95.2per cent, which is second only to the figure of 95.7 per cent seen at the height of the 2007 property boom before the crash.
The market in London and the south east are most at risk of seeing an artificial bubble as buyers, including wealthy foreigners with cash, battle for homes and flats before they are even built.
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