Surveyors are predicting house prices will rise over the summer period, according to the latest residential market survey from the Royal Institution of Chartered Surveyors.
A net balance of 23 per cent more chartered surveyors reported that house prices will rise rather than fall over the coming three months.
Surveyors also expect home sales top rise over the coming three months, with a net balance of 45 per cent more respondents – up from 36 per cent in May – predicting house sales will rise. This is the highest reading since RICS started compiling this data in April 1999.
Moreover, a net balance of 21 per cent more surveyors reported prices rose rather than fell in June, making this the strongest month for house prices since January 2010.
This rise in prices, according to RICS, has mainly been fuelled by increasing numbers of prospective buyers returning to the market. Last month, a net balance of 38 per cent more chartered surveyors reported a rise in new buyer enquiries.
Demand from prospective buyers has now risen month-on-month since January, due in part to Government-backed schemes such as Funding for Lending.
Despite increased appetite to purchase property, a net balance of 27 per cent more surveyors – up from 21 per cent in May – reported that demand for rented property increased in June.
RICS global residential director Peter Bolton King says: “After what has seemed like a very long wait we are finally starting to see what looks like the beginning of a recovery in the housing market.
”It is important to remember that activity levels still remain depressed by historic standards but the various initiatives designed to encourage the provision of finance into the market do appear to be paying dividends.”
King added that rents were likely to “edge upwards” over the next twelve months as a result of demand.