UK house prices increased in June driven by the sheer lack of supply on the market, monthly report from the Royal Institution of Chartered Surveyors, or RICS, showed on Thursday.
The net house price balance rose to 83 percent in June from 82 percent in May. All parts of the country continued to exhibit strong house price inflation, led by exceptionally robust upward pressure in Yorkshire & the Humber, Northern Ireland and Wales.
A net 56 percent of survey participants expect prices to increase further over the next twelve months.
The RICS noted that there is a clear excess of demand over supply. The net balance for new instructions came in at -34 percent, down from -24 percent previously.
Further, a net balance of +14 percent reported an increase in new buyer enquiries in June. Although this is the fourth successive positive monthly reading, it does represent a noticeable moderation compared to the recent high of +43 percent posted back in April.
The number of agreed sales picked up once again in June, evidenced by a net balance of +8 percent of respondents noting an increase.
Looking ahead, near term sales expectations suggested a broadly flat outlook in the three months ahead, with the latest net balance slipping to -4 percent from +8 percent.