Shortage in housing continues to remain the highlight of the UK property market, as latest data from the Royal Institution of Chartered Surveyors (RICS) shows that the stock levels hit new record low as the number of properties coming to market continues to decline.

“New instructions to sell fell noticeably with 13% more respondents seeing a fall in fresh listing rather than a rise over the month. Stock on estate agents books has consequently dipped to a new record low with branches (on average) now holding only 43 unsold properties,” RICS said in a statement quoting its UK Residential Market Survey for March 2017.

A prominent lack of supply continues to weigh on the housing sales activity in the UK and the situation is likely to result in price inflation in 2017.

The lettings market too is under pressure, as the number of properties to rent is not seeing any increase. The tenant demand continued to rise as 11 per cent more respondents of the survey noted an increase (rather than a fall) on a non-seasonally adjusted basis. “The indicator on new landlord instructions remained in negative territory (although only marginally) for a sixth straight month,” the RICS observed.

The imbalance between supply and demand continues to exert upward pressure on rents, and contributors anticipate further rental growth in virtually all areas over the next twelve months in the UK.