The fact that Britain needs more homes is more prevalent than ever, and it is being demonstrated in the home price increases which continue. The average price for a house in the UK jumped more than 2% this month, or £5,729. The increases looked to settle down, but now are rearing their heads once again due to an issue which is being considered the biggest in the future of the UK housing market. The shortage of homes which now exists is creating wider and wider contrast in what is available to home seekers.

The average price for a house in the UK increased by more than 3.5% in the second month of the year 2014. This is almost double the increase from January of this year, suggesting the increase in house prices is stabilising to some degree.

Estate agents are reporting lower stock levels of properties across the country, according to Rightmove. This is yet another reflection on the primary issue of a shortage of quality properties.

Miles Shipside, Rightmove housing market analyst commented on the housing issue, saying: “For the right property at the right price, demand is outstripping supply and leading to some further upwards price pressure. However there is a limit to what the majority is willing or can afford to pay, especially with the tighter lending criteria. In locations where there is a tight-stock market some different tactics are required for a successful move as competition gets fiercer for quality homes as demand increases.”

Overall, house prices are estimated to rise 3 to 5% during the course of 2015.