The number of people looking to buy a new home is at its highest level since August 2004, according to figures from the National Association of Estate Agents (NAEA).

Figures for July show the number of registered potential buyers per branch rose by 5% since June.

On average, estate agents saw an average of 462 house hunters per branch, the highest figure recorded in 11 years, back when the average was 582 per branch.

Stephanie McMahon, Head of Research at Strutt & Parker, said: “It is encouraging to see the buyer volumes increase as more people are seeking to move house. Our own Housing Futures analysis of the UK market points towards 56% of people intending to move within the next five years which would indicate momentum in the market.

"Being able to find the right house and location is key though, whether that be outdoor space, indoor dream items, or indeed the ability to connect through mobile and broadband.”

Supply starting to match demand

After a period of low supply, the volume of available homes for sale rose in July by 25%. NAEA member branches had, on average, 55 properties available in July, up from 44 in June.

It was September 2013 when figures were last this high, when the average amount of registered properties was 57.

Despite the rise in both number of homes for sale and the potential homebuyers, sales have failed to catch up.

On average, branches are making just 9 sales a month – a figure that hasn’t risen since May.

Market expected to catch up

Mark Hayward, managing director of the NAEA, says the new housing coming to the market should hopefully result in increased sales over the coming months.

But he admits there are not enough homes for sale to meet the growing demand.

He says that until more homes are actually built, there may be little chance of solving the housing crisis.

The NAEA report also recorded another drop in first time buyers, which Mr Hayward described as ‘alarming’.

He says as prices increases, more first time buyers will be pushed out of the market.