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Housing shored up by lack of supply - The Financial Times

Signs of improvement in the housing market are a reflection of a shortage of supply in a few specific areas, rather than a broader consensus that prices have bottomed out, according to experts.

A lack of property for sale in some areas has made it easier for homeowners to attract buyers and has pushed up prices. Winkworth, the estate agent, said the number of viewings required to sell a property dropped from around 50 in January and February to fewer than 10 last month.

Meanwhile, the Royal Institution of Chartered Surveyors (Rics) said the net balance of new instructions fell sharply last month as sellers were discouraged by lower prices and new rules that require them to have a home information pack before they can market their properties. Some agents have seen the number of properties on their books fall by 25-30 per cent since last year. Some parts of the market, such as family houses in central London and the south-east, have seen supply drop more sharply. At the same time, the number of buyers has increased