By Jason Theodorou

The average cost of a property in England and Wales increased by 0.3% during the first five weeks to June 12, after a 0.7% rise in asking prices in May - according to a survey by property website Rightmove.

The rise in people putting their homes up for sale came as home information packs (HIPs) were scrapped, allowing homeowners to put their property on the market without paying an extra charge.

Another factor is the expected rise in Capital Gains Tax, to be announced by Chancellor George Osborne as part of the emergency Budget on Tuesday 22 June. This has made investors more reluctant about adding to their portfolios.

Rightmove said that the housing market was beginning to turn, due to competition among sellers and a lack of potential buyers. Asking prices rose by 7.4% since the start of 2010, and have risen by 5% since June 2009. But the group expected prices to fall to the same level seen at the beginning of the year.

Miles Shipside, commercial director of Rightmove, said: 'They say that troubles come in threes. The continuing mortgage famine has now been joined by a surge in sellers following the abolition of Hips and investor reticence driven by rumours of CGT increases.'

'Together, these factors are likely to put an end to this year's recovery in house prices. A surge of Hip-free properties has come to the market, and mortgage-reliant buyers and wary investors are failing to match the increased supply'.

A shortage of properties for sale was one of the key factors supporting house price recovery during 2009.

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