The supply of homes for sale across the UK has tumbled to its lowest level since records began in January 1978.
The number of properties coming on the market has not only fallen for four months in a row, according to the Royal Institution of Chartered Surveyors, there is little sign that ultra-low mortgage deals or the end of political uncertainty is tempting vendors back to the market.
The “acute shortage of supply” of residential property could force values to rise by 25% over the next five years.
After seven months of falling prices, the latest RICS housing market survey shows the cost of a home in London has now risen for two months in a row.
RICS chief economist Simon Rubinsohn says: “There had been some hope that the removal of political uncertainty would encourage more properties onto the market but the initial indications are that this is not proving to be the case.
“As a result, it is hardly surprising that prices across much of the country are continuing to be squeezed higher with property set to become ever more unaffordable.
“The feedback we are getting in the survey, which points to prices rising by another 25% over the next five years, suggests that there is no real confidence that the measures necessary to deliver a meaningful boost to new supply will be put in place any time soon.”
Rubinsohn’s comments come after the Bank of England revealed that homebuyers are getting the best ever deals on their mortgages, with the average home loan rate falling to an average of 3.01%.
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