Surveyors and lenders have called for more action to tackle the lack of homes for sale amid fears that the new Help to Buy scheme will fuel another period of boom and bust.
Several studies have already pointed to demand in the housing market outstripping the supply in homes coming up for sale, as previously-launched Government schemes such as Funding for Lending have increased mortgage availability. The imbalance of demand and supply is putting an upward pressure on house prices.
As the new phase of Help to Buy promises to inject further demand into the housing market, Peter Bolton King, global residential director of the Royal Institution of Chartered Surveyors (Rics), warned that the country is not building "anything like" the number of homes it needs.
He said the new phase of Help to Buy "exacerbates a situation that is already there. The underlying problem is a lack of supply".
Rics recently suggested that an annual cap set at around 5% could be placed on house prices to prevent the market from encouraging buyers to overstretch themselves for fear of missing out on a property boom.
Mr Bolton King said the Bank of England appears to be monitoring the situation closely.
But he continued: "We aren't building anything like the number of houses that we need to."
He added: "There are town centres where there seems to be an awful lot of storage and empty rooms above shops, but how you convert them is another problem."
Housing charity Shelter recently suggested in a study that less than half the number of homes are being built each year than are needed to meet demand.
Mr Bolton King said that the situation is made more complicated by the varied performance of the property market across the UK.
House prices have risen by around 10% year-on-year in London, but in Northern Ireland, for example, prices have only just started to show signs of stabilising following the financial crisis.
He said: "What's right for Blackpool, where they might quite like a bit of gentle house price inflation, is the last thing that buyers might want to hear in (the London suburb of) Blackheath."
Paul Smee, director general of the Council of Mortgage Lenders (CML) said that an increase in the supply of new housing is crucial to the success of Help to Buy.
He said: "As the mortgage market continues to unfreeze, assisted by Help to Buy and Funding for Lending, an increase in the supply of new housing will be a crucial factor in success.
"The homes need to be there for people to buy, as well as the finance to buy them."