The number of buyers registering for property in London has increased by 50% on an annual basis, with 12 new buyers for every new instruction during September 2013 according to Sequence.

Although new instructions (to sell) decreased by 1% on the previous month they did rise by 7% annually, although this is a third of the rate of buyer demand.

According to the Sequence data, UK average house prices remained flat in September compared to August but increased by 7% annually up to £204,340 having increased every month for the previous seven months (excluding July which was flat).

David Plumtree, Chief Executive at Sequence, said: “We have been deluged by new buyer activity in the last month proving that the aspiration for home ownership across the UK, and in London in particular, is very much alive and growing. As a result there are almost 12 buyers for every property in London and six buyers for every property across the UK.

“This growing competition for property is now impacting on house prices, which have grown by an average of 7% annually in the UK and 6% in London. Demand is set to escalate yet further following the Government’s fast-tracked introduction of Help to Buy to the pre-owned market, so competition for property is only going to increase, fanning the flames for frustrated buyers.

“However, second and third steppers across the country should now be encouraged to put their property on the market, incentivised by rising prices, a ready pool of buyers and now also the chance to access a 95% mortgage themselves. This will increase the supply of property in the short term and create a more balanced market across the UK.”

London property prices fell by 2% on month in September, after rising 5% in August which pushed prices to their highest for over three years with average prices still at £390,335, the second highest point for over three years.