There are now almost seven buyers for every new UK property and 14 in London, the highest levels since records began.
This toxic mix of a flood in demand and drought in supply has forced up prices across the country, with the average UK property leaping another £5,583 in October to hit £209,923.
That's a rise of 3% in the month and 11% annually, according to new research from Sequence, which owns estate agencies Barnard Marcus, William H Brown and Fox & Sons.
London prices rose 4% in October to hit £404,199, some 10% higher than a year ago.
Last week, estate agency haart urged property owners to "sell, sell, sell" as surging buyer demand met a slump in supply.
The research also showed sales transactions rising strongly, up 4% in October and 33% in the last year to hit a three-year high.
Again, London is leading the way, with a 9% rise in sales transactions in October and 57% annually.
The number of mortgage applications increased 6% in October and 45% annually as buyers continue to flood into the market, said David Plumtree, chief executive at Sequence.
“The appetite to buy property across the UK has risen to record levels, with almost seven new buyers for every new property coming onto the market.
"This has impacted on property prices as competition for every new instruction intensifies.
“In spite of rising prices, there has been a surge in mortgage applications across the board, demonstrating that buyers are still willing and able to buy.
"Increasingly attractive mortgage rates and incentives such as Help to Buy are fuelling the drive in demand and as long as this continues, we can expect to continue to see prices rising.”
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