Property for sale: One of the country's top supply hotspots is near Sheffield

The latest house price index shows house price growth pushed ever higher by the limited number of properties on the market.

Which is why house hunters will be interested to know one of the top property supply hotspots is a short drive from Sheffield.

High Peak, Derbyshire - which includes Castleton and Buxton - is second on the Rightmove list of new supply hotspots, showing an 82% increase of properties for sale than this time last year.

The number one hotspot was Bexhill-on-Sea in East Sussex, up 88%. Yorkshire and the Humber also showed an increase in properties coming to market of around 12%.

Rightmove’s director of property data Tim Bannister said: “The market has picked up pace after a busy festive period and it’s a really encouraging sign to see more properties start to come to market for sale.

"More new listings, coupled with the higher number of requests from prospective sellers to estate agents to value their home we are seeing, certainly suggests good news and positive signs we are moving towards a better balanced market in 2022.

“These new sellers will be met by plenty of eager buyers, as the data shows the number of enquiries for homes for sale is even higher than this time last year.

"This means that while rising numbers of new homes for sale will be very welcome, buyers will face stiff competition for available properties, and should act fast when a property they like comes onto the market.”

The figures come as the Nationwide House Price Index shows the housing market has made the strongest start to the year in almost two decades. Purplebricks this week reported nine houses in the Sheffield postcode which sold with seven days of coming to market.

Property supply is a major issue, say experts. Iain McKenzie, chief executive officer of The Guild of Property Professionals, added: “After a blockbuster 2021 for property prices, signs of the predicted slowdown in the housing market in 2022 are nowhere to be seen.

“It’s incredible to think that this is the strongest start to the year since 2005, and we’re seeing house price growth pushed ever higher by the limited number of properties on the market.

“We should expect a cooling effect on prices in the coming months, as the cost of living increases start to impact upon the affordability of homes, especially for first-time buyers.

“The demand for properties is still there, however, and any increase in the cost of renting could push people towards wanting to get their foot on the ladder.

“With flexible and hybrid working having become part of the ‘new normal’, office workers still need the space at home to work comfortably.”

Founder of GetAgent.co.uk Colby Short said: “It’s fair to say that something has to give and we’re now seeing a squeeze on household incomes in other areas of life. While this is unlikely to derail the market, we can expect the current rate of house price growth to ease over the coming year as many households tighten their belts.”