Surveyors report "soaring demand" as house prices rise
The number of surveyors reporting a monthly rise in house prices rose to its highest level for eleven years in October, according to the Royal Institution of Chartered Surveyors.
The proportion of chartered surveyors reporting rising prices hit 57% during the month – the highest level since June 2002.
But RICS said the imbalance between supply and demand has become "problematic", with surveyors across the country claiming that, while buyer numbers have been boosted by the Help To Buy scheme, there are not enough new homes coming on the market.
The organisation said this imbalance needs to be "urgently addressed" and called for more homes to be built.
RICS also said the number of homes sold also saw a big jump last month, with surveyors selling an average of 20.3 homes in the three months to October - the highest amount since February 2008.
It said that almost every region of the country saw the number of homes sold increase, which RICS says indicates the housing market recovery has spread from London and the south east across the country.
Simon Rubinsohn, RICS chief economist, said: "It's no secret the housing market is gathering some momentum and that buyer numbers are on the rise right across the country. A greater willingness by lenders to increase loan to values on mortgage products allied to the Help to Buy scheme has meant that more and more first time buyers are in a position to enter the market.
"In spite of this, the amount of homes currently up for sale is still nowhere near enough to keep up with demand and – in order for the market to function correctly – this imbalance urgently needs to be addressed.
"Housebuilding starts have picked-up recently but we are still well behind in terms of the amount of properties needed. If we are to create a more sustainable market, it is critical that many more good quality homes are built in areas where people want to live."
Surveyors state they are optimistic that the "flourishing" market is set to continue.