House prices in the North West rose slightly last month as surging demand from buyers continues to outstrip the supply of homes for sale, property analyst Hometrack has reported.
But in a sign that prices could be starting to run ahead of what buyers are willing to pay, the typical percentage of the asking price achieved dipped nationally in November to 95 per cent, from a six-year high of 95.2 per cent recorded in October.
It is the first time in 11 months that the percentage of the asking price has fallen, although the latest figure also masks a new record high of 97.7 per cent of asking prices being achieved in London.
Widened mortgage availability is said to be fuelling demand from aspiring property buyers, but experts say that a lack of houses to choose from is pushing prices up.
Hometrack said that while the number of new buyers registering with estate agents was up 10.2 per cent over the last six months, the supply of homes for sale has dropped 0.6% over the same period.
Prices rose 3.8 per cent year-on-year and on a month-on-month basis, increased in every region of England and Wales, although the performance of the market continues to vary across the country.
Prices were up by 0.1 per cent in the North West.
Properties are taking an average of eight-and-a-half weeks to sell.
Richard Donnell, director of research at Hometrack, said: “A widening gap between supply and demand continues to put upward pressure on house prices.
“Faster sales are eroding the stock of homes for sale, adding to the scarcity of housing.”