Fears of Bubble As Demand Far Outstrips Supply

Fears that Britain's housing market is headed for bubble territory have been stoked by fresh evidence that demand is far outstripping supply. As the market heats up, buyers desperate to secure a property are paying the highest proportion of asking prices seen for a decade, according to a report from property researchers Hometrack. In London, buyers are paying more than 99% of asking prices against a backdrop of soaring demand from foreign investors and local house hunters The figures come alongside a warning that the south of England faces a shortfall of at least 160,000 homes by 2018. An analysis of building projects by upmarket estate agent Savills finds that local planning authorities are "simply not planning enough new homes to meet the growing housing need." Read more on the Hometrack website.