Hopes for post-election bounce in homes hitting the market have faded as housing supply plunges to an all-time low.
The latest RICS UK Residential Market Survey, published this morning, showed the stock of homes per UK surveyor falling to its lowest level since the data series began in January 1978.
Vendor instructions fell for fourth consecutive month, while the average stock of houses per survey has dropped by around 12% since the start of 2015.
At the same time, new buyer enquiries are increasing at the fastest rate in over a year, pushing up house price growth expectations among surveyors.
House prices rose again in May, and at a quicker pace than in April.
And a balance of 38% more surveyors now expect higher house prices over next three months.
Despite the rise in new buyer enquiries, which increased from a net balance of 4% in April to 18% in May, many respondents expressed some surprise at the lack of post-election bounce' in fresh supply following the unexpectedly decisive outcome to the poll.
The North West and London saw the sharpest drop in instructions compared with April.
More ominously, UK-wide listings have now failed to see any meaningful growth since the middle of 2013.
The average number of newly agreed sales per surveyor rose only very marginally to 19, down from 23 in May 2014.
In the lettings market, tenant demand continued to increase in May for the fifth consecutive months, and rents are expected to rise.
Simon Rubinsohn, RICS chief economist, said: "There had been some hope that the removal of political uncertainty would encourage more properties onto the market but the initial indications are that this is not proving to be the case.
"As a result, it is hardly surprising that prices across much of the country are continuing to be squeezed higher with property set to become ever more unaffordable."
Rubinsohn said there is little confidence among surveyors that supply will increase any time soon, despite government measures.
New figures for England and Wales, published by LSL this morning, showed home sales down 14% in the year to May as lack of supply suppresses housing market activity.
Monthly property price growth picked up to 0.4%, but this was still only a third what it was a year ago.
But it still left average house prices in England and Wales at a new high of £277,178, the fourth price record set this year.
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