Estate agents in the London area have noticed a dramatic turn around in the property sales market over the course of the past two months, as the market has turned in the favour of sellers rather than those looking to buy a new house.

Cluttons estate agents have reported that due to a shortage of property on the market, those people looking to buy are now struggling to find the house they want and in a number of cases, properties are being sold on a sealed bid basis once again, with demand for new property for sale returning to the pre credit crunch levels of 2007.

With the drop in value of houses over the past couple of years, many people who may have otherwise placed their home on the market have decided against selling, at least until prices increase once again, leading to a significant shortage of property on the market. From a buyers point of view, reduced prices and the current low cost of a homeowner loan or mortgage, particularly for those who only require a low loan to value ratio on their purchase, means that now is an attractive time to think about buying, which in turn has the effect of pushing up demand.

This increase in demand has led to an increase in property price in the London area and it seems likely that this change in the situation could well be seen across the rest of the country in the coming months. Increasing property prices are also good news for those looking for a loan to purchase their home with, as increasing prices mean a reduced level of risk for banks and building societies who will therefore be able to relax their lending criteria on their loan products and offer higher loan to value products at hopefully cheaper interest rates.