UK housing remains quite unbalanced through the month of March.  Supply did not keep pace with demand and that is worrisome for many inside the housing market, according to Hometrack figures.  This means that a housing bubble is more a potential problem than what it was just thirty days ago.  A housing bubble could create the same problem which occurred in 2008.

Demand continued to be ferocious during the month of March, rising almost 7%.  This is in hard contrast to supply which increased at only 1.9%.

UK house prices continued on a quick pace, rising almost more than 0.5%.  London and the Southeast continue to be the areas of concentrated growth.

The gap between supply and demand is the main issue though, and this trend does not look to be changing anytime soon, according to the Hometrack data.

A shortage in housing is still an issue and unless something drastic is done, many will be left homeless in just a few years.  Many have recommended the government put in place an incentive plan for builders to help combat the problem. 

Howard Archer with IHS Global Insight believes upward mobility in house prices outside London remains a non-issue.  He also believes short term housing activity is not at a level to bring too much concern about a bubble just yet.

Archer further commented on the potential of a housing bubble materialising, saying: “The risk of a house price bubble developing is very real as there is appreciable upward momentum in activity and house price strength is becoming more widespread.”