Hometrack say demand for homes continues to grow

• Housing market activity has not registered the traditional seasonal downturn over August. 
• Demand continued to grow, up 1.1%, on the back of improving market sentiment. Over each of the last 3 years demand has fallen during the month of August.
• Supply remains constrained, growing by just 0.8% over the month. 
• Over the last 3 months much of the growth in supply has been located in the regions outside London and the South East.  
• Improving market conditions and firmer pricing levels in the Midlands and Northern regions are bringing more sellers into the market.
• Rising demand and sales agreed means that the recent momentum in house price growth has been maintained. 
• Average house prices grew by 0.4% over the month, following a 0.3% increase in July.
• The strongest market conditions are London and the South East where there is the greatest mis-match between supply and demand. 
• Prices in London and the South East grew at an above average rate of 0.9% and 0.5% respectively.
• Across other regions the overall trend in demand is upwards but supply is also rising and keeping price rises in check. 
• House prices grew across a third of the country in August – the highest coverage of price growth since May 2007.
• The net balance of supply and demand form the survey is a lead indicator of house price growth. The current balance points to continued house price increases in the months ahead.