Supply boost in housing market

Further evidence that rises in house prices over the past year are encouraging more people to put their properties up for sale emerged today, stoking fears that another correction may be imminent, with demand not able to keep pace.

The number of properties for sale in the UK has now reached the highest level since January 2008, rising by 145 per cent, according to findaproperty.com. There has been a 9 per cent increase in the number of houses available for sale since the election – possibly amid fears that capital gains tax increases could hit profits on sales of second homes following the emergency budget next week – part of a 35 per cent increase in supply so far this year.

The website said that the higher supply had not as yet led to falls in prices, with its research suggesting that asking prices have risen by 0.3 per cent over the last month.