There are 47 per cent fewer properties for sale across England and Wales than in December 2007 with the general shortage of stock “creating a vicious circle of spiralling price hikes” according to a property website.
Home says that in November around 12,000 fewer properties entered the marketplace than in the same month last year, thereby accelerating the already well-established downward trend in stock levels. In turn, Home claims this lack of supply has driven overall annual price gains back up to 8.0 per cent despite the seasonal slowdown.
In the East of England, where price rises have eclipsed London and the South East over the last six months, the number of properties entering the market has fallen by 20 per cent over the past 12 months.
Moreover, there are 74 per cent fewer properties entering the market in this region than there were back around the peak of the last property boom in 2007.
The typical time on market for England and Wales has also been reduced by the imbalance between demand and supply; currently it is 104 days, which is six days less than a year ago.
Overall, the website says the average asking price for England and Wales is now 26.5 per cent higher than it was in December 2010.
It forecasts that additional upward pressure on prices will come from the Midlands and the South West, as well as from London, the East and the South East of England over the course of 2016, as competition in these regions intensifies for the limited stock available.