Shortage of houses leading to fears of price bubble (From East London and West Essex Guardian Series)
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Estate agents agree on a shortage of housing stock
The surge in house prices which has led some commentators to fear another housing bubble has reached the area according to estate agents.
In recent months estate agents in the district have noticed more first-time buyers in the market who are paying closer to vendors' valuations.
Such resurgence in the housing market has led some estate agents and surveyors to suggest the introduction of a price cap.
Sam Murray of Forest Residential, in Loughton, said: “It is an estate agent’s job to get the best price but no one wants to see another bubble.
“Recent increases in prices are due to a lack of properties for sale in the area.”
A property bubble occurs when the market pushes the price of houses above their intrinsic value, leading to a sudden crash when the market readjusts.
The view that there is a shortage of housing stock was echoed by Sally Tiernay, of Churchill Estate Agents, in Loughton, who was also in favour of a price cap.
Epping Forest is also experiencing an influx of house hunters for surrounding areas, according to agents.
Mark Gravenor, of Douglas Allen Estate Agents, said: “There has certainly been an increase in the number of people coming in from Brentwood and London.”
He also suggested prices would always be driven by supply and demand and implementing a cap was unfeasible.
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