A dramatic slump in the supply of homes being put on sale in London means that parts of the capital now have as many as 33 applicants for each available property.
Chestertons says that across London as a whole, the supply of properties coming on to the market since the start of 2019 is 15 per cent down on 2018 levels.
The biggest drop in instruction levels has been witnessed across the north and east of the capital, down 32 per cent in June year-on-year.
The agency says this imbalance between growing buyer demand and limited properties for sale is creating significant market competition.
In Islington, there are currently 33 applicants for every property on the market, up from 22 people per property a year ago. There are also more than 15 registered buyers for every home for sale in Hampstead and Kentish Town.
Meanwhile it says the number of people registering to buy property in central London locations since the start of the year is up 29 per cent on the same period in 2018, the biggest jump in demand seen anywhere the capital.
As a result, Chestertons’ viewings in June were up seven per cent compared to the previous year, while offers had increased by nine per cent. Across key central areas including Marylebone, Notting Hill, Mayfair and Knightsbridge viewers were 14 per cent up on June 2018.
“Buyers simply aren’t prepared to put off purchase or investment decisions any longer and are returning to the market in their droves – especially in prime central areas and at the top end of the market where prices are presenting particularly attractive opportunities” says Guy Gittins, Chestertons’ managing director.
“It’s a different story on the other side of the fence and homeowners are still cautious … Buyers are outnumbering available properties at staggering ratios in popular areas such as Islington.”