Demand is exceeding supply across the UK housing market, with estate agents registering five house hunters to every available property.

The monthly market survey of the National Association of Estate Agents (NAEA,) found that the average branch had 287 house hunters on its books in October, down slightly from 294 the previous month.

The average number of properties available also fell to 57, down from 62 in September.

This demand is pushing house prices up as the gap between asking and selling prices fell from 10.9% in September to 8.8% in October.

This increase in demand did not translate into an increase in mortgage sales though- which dropped from nine in September to eight in October. Even so, a significant percentage of these sales were made by first time buyers (22%) - more than double the number this time last year.

Gary Smith, president of the NAEA, said a good way to stimulate the market would be for the government to extend the stamp duty holiday, which is due to end in December.

"The danger is that this short-sighted policy could precipitate an unwelcome pause in the housing market at the start of the New Year," he said.

The NAEA recently formed the 1808 Coalition with the Association of Residential Letting Agents. Named after the year stamp duty was introduced, its aim is to reform what it calls a "tax on aspiration".