Homes for sale at record low as prices keep rising

The number of homes for sale fell to a new record low in November as house prices continued marching upwards, surveyors have reported.

An average of just over 45 properties were listed for sale per surveyor last month, marking the lowest figure since comparable records started in 1997, the Royal Institution of Chartered Surveyors (Rics) said.

The number of new homes coming on the market has been shrinking back for 10 months in a row, according to Rics.

Looking ahead, it said home ownership initiatives such as Help to Buy and starter homes are likely to boost house sale numbers over the coming months.

But despite these measures, surveyors expect house prices to continue climbing higher into 2016.

Rics suggested this expectation shows that "although new housebuilding is expected to increase, the belief is that this will not be enough to take the market back to more sustainable levels".

Simon Rubinsohn, chief economist at Rics, said: "I can't recall a set of comments in the residential survey which have so frequently drawn attention to lack of stock on the market.

"Given this, it is hard not to envisage prices continuing to climb upwards as we move through the early stages of 2016.

"It remains to be seen how successful the Government's latest set of initiatives will be in driving up the rate of new build, but with the best will in the world it is likely that the boost to demand will come through rather more rapidly than the expansion of the development pipeline."

Rics said that recent stamp duty changes, which made the tax cheaper for the majority of house sales but made it more expensive for top-end properties, have been blamed for holding back the prime property market in some parts of the UK, particularly in London and the south east of England.

But in Wales, Northern Ireland and the south west, Midlands and northern areas of England, surveyors have reported some positive boosts to activity from the revamped stamp duty system.

Meanwhile, demand for homes edged up in November, with a net balance of 6% of surveyors reporting demand from buyers rising rather than falling.

Rics said the imbalance between the growing demand for homes and the falling supply of properties is continuing to fuel house price growth. A balance of 68% of surveyors expect to see house prices push up further in the next 12 months.

Across the UK, a balance of 49% of surveyors reported house prices rising in November rather than falling, with East Anglia, the south east of England and the East Midlands leading the way.

East Anglia saw the firmest house price rises in November, with a balance of 67% of surveyors there reporting prices increasing.

Figures released by the Treasury on Wednesday showed that some 130,000 homes have been purchased under the Help to Buy scheme since its launch in 2012.