THE Bradford & Bingley Estate Agents’ latest Home Report reveals that the market in the South East is continuing to suffer from a supply shortage.

This is creating a log jam that is poised to drive house price inflation higher. There are now an average of 14 buyers to every property placed on the market in the region.

Bradford & Bingley’s experience shows that sellers’ vigilant approach of waiting for the right property is particularly affecting the £50,000 to £100,000 price range with an average of 18 buyers to every property, the £400,000 to £500,000 price range with an average of16 buyers, and the £250,000 to £300,000 price range with an average of 15 people to each property. At the top end of the market there are still seven people looking for every property priced at £1 million plus.

With this high ratio of buyers to properties for sale, the number of viewings have also increased considerably. Owners of bungalows and detached houses have seen the greatest increase with an average of 13 viewings. Terraced and semi-detached houses are attracting an average of 12 viewings.

Properties in the South East are selling at 96 per cent of the original asking price; one per cent less than the findings in November, 2001.

The “singletons” market remains buoyant; the proportion of peopl buying on their own in the South East has risen by four per cent since last November to 36 per cent. The supply shortage appears to be having a knock-on effect to the first-time buyer market. The amount of first-time buyers in the South East has dropped by four per cent.

Clive Pightling, spokesperson for Bradford & Bingley South East, said: “At the end of last year, we predicted that the market would continue to rise by no more than three to five per cent in 2002. However, it is unusual to be in a position so early in the new year where we feel that this prediction was over cautious as prices now look set to rise between five to 10 per cent.”