The number of properties available for sale in the UK has fallen which will likely lead to stronger demand from buyers and push property prices upward. According to the Royal Institution of Chartered Surveyors (RICS), the number of homes offered into the market for sale is at the lowest level since 1978. UK estate agents only listed 52 properties onto the market per branch in May. This is below the listing of 60 properties per branch last year.

Buy to let landlords could be buying up properties and in taking them off the market it is leaving fewer choices for buyers. With more and more hopeful buyers being kept off the property ladder, landlords are using the opportunity of low remortgage interest rates and cheap mortgage deals to combine in building their portfolios. Some experts believe there is a buy to let boom occurring in Britain.

The Council of Mortgage Lenders (CML) reports that one in seven UK mortgages is held by a landlord, which is up from the one in nine recorded five years ago.

First time buyers have been showing more interest in the market according to property lister Rightmove which will also put a strain on supply. Yet, as lending has become tighter and house prices rise further, many will find it difficult to buy a home, even with government programmes in place to assist with deposits.

Drops in supply of properties were reported in most areas of the UK. London and the north-west area of England experienced the largest drop in the supply of homes available in the market. Scotland was reported as the only area to have an increase of new properties added to the market.