Asking prices have jumped 5.1% over the last year, property search engine Home has said.
At the same time, the total number of properties on the market has fallen 14% and is now 30% lower than five years ago.
According to Home, the volume of property placed on the market last month was down 56% on the highs of August 2007. In London, supply of new property was down 74% compared with August 2007.
The website also says that house price inflation is accelerating, with average asking prices having risen 4.9% in the first nine months of this year.
Doug Shephard, director at Home, said: “The supply crisis, which is most acute in London and the south-east, is not going to go away. There is no indication of a sudden influx of new-build or resale property to help address the housing supply crisis.
“Perversely, it’s still fairly grim up north. Just when house prices might have started to recover some lost ground, we are seeing an influx of supply in these relatively sluggish regional markets.
“It’s good news for buyers who will have more choice, but northern vendors will continue to struggle and prices will most likely continue to stagnate.”