House prices set to continue rising as supply shrinks

A lack of available properties is helping to push up house prices, surveyors say.

As a result, a majority of Royal Institution of Chartered Surveyors (RICS) members think prices will continue to rise over the next year.

The shrinking supply meant the number of new properties coming to the market fell by a third in June.

But with no let-up in demand, all parts of the UK continued to report robust increases in house prices, RICS said.

"Respondents are pretty unanimous in once again highlighting the challenge around supply, whether in the sales or rental markets," said Simon Rubinsohn, RICS chief economist.

With demand increasing and supply continuing to falter, a net balance of 83% of surveyors reported an increase.

Looking ahead, a net balance of 56% anticipated that prices will continue to increase over the next twelve months.

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