Housing demand increases

The property analytics business said this was the strongest level of demand seen since the 2007 downturn.

It said the activity levels were boosted by first-time buyers looking to beat the stamp duty holiday which ends on 24 March.

The stock of housing for sale also grew 10% over the month but with investors and first-time buyers not having property to sell, the growth in demand over the month out-paced the increase in supply across nearly all regions.

Overall pricing levels remain unchanged for the second month running. A small increase in London offset price falls across six regions and static prices across three.

Richard Donnell, director of research at Hometrack, said: “Rising demand and constrained supply resulted in overall pricing levels remaining unchanged for the second month running.

“While the seasonal pick-up in demand is to be welcomed, the fundamentals facing the housing market remain largely unchanged - the average time to sell for example, remains at relatively high levels and the balance of supply and demand remains in negative territory.

“In the short term a lack of housing for sale is set to underpin prices while market activity will benefit from the support of first time buyers as they race to beat the ending of the stamp duty holiday.”