With uncertainty regarding the outcome of the general election over, demand to buy and rent property rose sharply in May, according to the National Association of Estate Agents (NAEA) and the Association of Residential Letting Agents (ARLA), but property supply is not keeping pace.

The NAEA report that demand from buyers hit an eight-month high last month, with 383 house hunters registered on average per branch in May, up from 344 in April, and the highest number recorded since September 2014, when 406 house hunters were registered.

The supply of properties coming onto the sales market also rose in May with 46 houses up for sale per NAEA member branch, compared to 43 in April, but remains well below the level needed to help meet rising demand levels. Nevertheless, this led to a marginal rise in the number of sales per member branch, with nine sales agreed in May, compared to eight in April.

Mark Hayward (left), Managing Director at NAEA, said that the increase in the volume of house-hunters searching for homes was owed to a rise in confidence following the certainty that the outcome of the General Election delivered.

He commented, “The housing shortage will not be solved any time soon, so as pressure mounts we will no doubt see increases in house prices, making it harder for those stepping on or up the ladder.”

Meanwhile, there is a similar supply-demand imbalance continuing to be witnessed in the rental market, with the number of rental properties available for tenants actually decreasing in May, according to ARLA.

The Association report that the supply of rental properties fell by seven per cent in May, from April, with just 179 homes managed per ARLA branch in May; the lowest level recorded this year.

The report found that worryingly, London has the least amount of rental properties per branch, with only 134 managed in May, compared to 273 properties per branch in Scotland.

Whilst overall available rental properties decreased, demand stayed the same. ARLA members reported 36 potential tenants registered per branch in May, remaining the same as the previous two months.

With the supply-demand imbalance widening, a third – 34 per cent – of ARLA agents in May reported rent increases for tenants. This figure has been gradually rising since the start of the year, when just 27 per cent of agents reported hikes for tenants.

David Cox (right), Managing Director of Association of Residential Letting Agents (ARLA), said, “It is worrying to see that there such a sharp decrease in supply, when we know there is already a struggle to meet housing needs. The months following any major event such as the General Election will always cause uncertainty and shake things up for the property market, but one thing is for sure – the dwindling supply and already-high demand is an issue that’s going to continue to plague the property market.

“We are in desperate need of more housing stock in this country and supply and demand isn’t something that will level out overnight. It’s vital that the new government follows their promise of building more houses, so we can free up rental properties and head on the right path to turning the property market around once and for all.”