Rapid housing inflation, which is squeezing affordability and hitting Treasury coffers through falling stamp duty receipts (see below), has long been attributed to the numbers looking to buy being greater than the amount of homes for sale. The Rics reckons despite more homes coming to market last month, this disparity is only getting worse.

New buyer enquiries rose for the tenth month in a row In January and growth accelerated for the second consecutive month, according to the survey of Rics' members reported by the BBC. This means demand is outstripping supply, which will likely result in house prices rising more rapidly in the short term at least.

Since Chancellor George Osborne announced a three per cent stamp duty surcharge on second homes in November, which will increase the tax on a £250,000 home for a buy-to-let investor from £2,500 to £7,500, a trend of fewer people selling because they can't afford to move has been reversed. But, the Daily Mirror says, it has also triggered a "stampede" of landlords looking to beat the increase.

This has other knock-on consequences, too, with the Rics reporting that rental increases are also expected to track an upward trajectory for purchase prices in the months ahead.

Stamp duty is not the only tax clampdown on buy-to-let. From 2017, investors will no longer be able to offset mortgage interest against their tax bill like a company and will instead receive a tax rebate at a flat rate of 20 per cent, effectively pushing more people into higher rate brackets and at least halving relief for those paying above basic rate income tax.

This is currently being challenged on human rights grounds by, of all people, Cherie Blair. But if it is upheld, it will reduce yields substantially.

Coupled with a likely drop-off in buy-to-let demand after April – and pledges to boost housebuilding – this could help turn the tide on supply and contribute to a longer-term softening in house price gains.

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