As more hopeful homeowners reach their goal and buy their first home, climb upon the property ladder and exhale at their new found comfort within the largest investment they will likely ever make, warnings are coming as to the state of the housing market.  The first time buyers are back, the property ladder is thawing and yet the demand is so strong that the supply of properties is dwindling and house prices are rising.  Maybe too fast.

The Royal Institution of Chartered Surveyors (Rics) has warned that the house prices are likely to climb out of reach of many as they grow due to strong demand from buyers. 

Rics reported that the housing market has realized its highest level of house sales within six years over the first quarter of this year.  At an average of 22.7 homes each in the first quarter of the year, surveyors achieved the highest average since February 2008.  There were increases in house prices across all regions in the month of March, with surveyors reporting more increases than decreases at 57%.

Speaking on the decline of property supplies, Simon Rubinsohn, Rics chief economist, said, “We desperately need more homes in areas where people want to buy and want to live. Until this happens we're likely to see prices to continue to increase and it is going to be ever harder for many first time buyers to conceive of ever owning their own home.”

While demand for properties grew in the first three months of the year, the number of available properties for sale declined for the third straight month in March.

Ribinsohn said, “Now that the housing market recovery is well and truly underway and mortgage finance is more readily available, buyers seem to be looking to test the market right across the country, not just in the usual hot spots of the south-east.”

Expectation is for the strong demand for property ownership to continue.