Market recovery 'will lead to shortage of property to purchase'

Once the financial markets recover from the current downturn there will be a shortage of houses to buy, it has been claimed.

Paul Collins, the property editor of BuyAssociation, has predicted that when the market picks up, there "won't necessarily be enough properties to satisfy demand" for purchasers.

This could be beneficial for those with buy to let mortgages, as a shortage of houses available to buy could lead to more people looking to rent.

Mr Collins stated that the outlook for the property market is "probably a lot more optimistic than it's being painted at the moment".

And a lack of housing in the UK will contribute to the decrease in supply once people regain confidence and get back onto the ladder, he said.

The October 2008 Zoopla! survey has revealed that 38 per cent of property owners expect the value of their homes to stay the same or increase over the coming months.