Bradford & Bingley Estate Agents' HOME report has highlighted a continuing supply shortage in the district, it has been revealed.

The shortage is set to create a log jam which is poised to drive house price inflation higher.

The report reveals that there are now an average of four buyers chasing every property on the market.

Bradford & Bingley says the trend for vendors to show a vigilant approach of waiting for the 'right' property is particularly affecting some upmarket properties.

The top end of the market has also seen a shift in activity in both properties and buyers.

With this ratio of buyers to properties for sale, the numbers of viewings in the district has fallen.

The most noticeable decrease has been on terraced houses which has reduced from ten to seven viewings.

Bradford & Bingley believe this fall could be due to homes being sold quicker as a result of increased competition.

Properties in the district are selling at 97 per cent of the original asking price, two per cent higher than the company's findings in November 2001.

This implies that properties are being priced realistically.

The district has seen the percentage of people buying on their own decrease by one percent.

The supply shortage appears to be having a knock on effect to the first time buyer market.

The report reveals the amount of first time buyers getting onto the property ladder has dropped by seven per cent but first time buyer property prices having increased by 9.6 per cent to £63,611.

Roland Hughes, spokesman for Bradford & Bingley North, said: "Buyers appear to have come out earlier to view than in other years, but one common dynamic remains and that is a reluctance to put their own property on the market first.

"Pre-Christmas speculation that prices could dip this year has perhaps dented prospective vendor's confidence to put their property on the market at the start of the process."