A SHORTAGE of houses is driving up local market prices. Martel Maides director Keith Enevoldsen said that there were fewer properties available – especially in the middle price bracket – and so it was a good idea to buy now rather than delay.

‘Interest rates and purchase funds remain relatively cheap and after 18 months of relatively slow growth in the market, we are seeing a rise in house-price inflation.

‘Should the situation continue, all property except apartments will be in short supply, he said.

‘For those thinking of buying, the message should be – buy sooner rather than later.’

Mr Enevoldsen added that the States’ zero-10 tax policy would put further strain on the market.

‘With the States going for growth to see us out of the black hole deficit,’

‘It might well be that there is an influx of finance-based employees, which will add further pressure to the housing market and force prices up,’ he said.

Broadlands director Andrew Round agreed that would increase demands, but there would be benefits.

‘There is bound to be a time lag between growing the economy and getting more people in and building more accommodation, which means prices will rise,’ he said.

‘But if the housing market is buoyant then it will encourage people to come over.’

Cranfords managing director Jerry Root said middle-market properties were popular at the moment and he had not had to advertise the last six he sold.

However, he expected the situation to level out in the autumn.

‘The reason that we’ve slowed up taking properties on is because it’s the summer – people are going on holiday and the schools are breaking up,’ he said.

‘We will see more properties on the books in the late autumn. There’s nothing to worry about.’

* Latest official figures indicate that the average cost of a home is £319,090, nearly £20,000 more than at the end of last year.