As viewing figures and inquiries from potential buyers continue to grow, the number of homes coming on to the market is dropping, according to Strutt & Parker.

While some offices across the UK report healthy levels of stock, others estimate figures for the first two months of this year are down by as much as 60 per cent compared with the same period last year.

Kevin Boulton, of Strutt & Parker’s Ludlow office, said: “There is a perception among the general public that property is still not selling, but for the past six weeks or so viewing activity has increased rapidly, new potential buyers are contacting us and we are selling properties.

“But, the irony is that that stock is not being replenished with new properties, just at a time when the number of inquiries about properties from people wanting to view and register as applicants is back to the levels of last summer.

“When we are talking to potential buyers, we hear a lot of them saying they have been looking at the property portals and can’t help but notice there’s not an awful lot of new stock from one week to the next. Period family homes priced around £500,000 and upwards are particularly thin on the ground.”

Kevin added: “It’s understandable that in difficult economic conditions, when confidence is low, the natural inclination is to sit tight – to do nothing.

“However, a lot of people have sold in the past six to nine months and are sitting on cash, living in a rented property, and now see value in the market where property is sensibly priced.

“Now is a good time, in particular to upsize, because since potential buyers have sold their own property, the margin in real terms between what they sold for and what they have to pay to buy is decreased.

“They have money in the bank, properties are realistically priced and interest rates the lowest on record, but they just can’t find what they are looking for.