Compared with this time last year there are 25 per cent more homes up for sale, according to the National Association of Estate Agents.

Although we have not seen the panic selling of the late 1980s and early 1990s, when property values slumped, the government’s austerity package, rising unemployment and the expectation of higher interest rates have conspired to push property owners towards selling.

This in turn is creating a downwards pressure on prices, as NAEA president Michael Jones explains: “Undoubtedly, broader economic constraints on spending continue to impact on consumer confidence, especially at a first-time buyer level, and the effect of the public sector cuts has yet to be fully felt.

“With limited mortgage availability and the concern about a likely rise in interest rates still putting off many of the people who otherwise would be looking to buy, it is important that the Government does everything it can to encourage growth at this crucial stage of the recovery process.”

The NAEA predicts that property values will fall by 20 per cent before they return to their long term average of four times average earnings (they are currently just above five times average earnings, according to Nationwide Building Society).

With stock markets once again going into freefall as the Japanese and North African situations spook investors, the lure of property as an appreciating asset is likely to return to favour.

Original comment can be found at The Quick House Sale Advisory