Despite the uncertainty surrounding Brexit negotiations the “dire shortage” of homes is still pushing prices up, according to surveyors.
The Royal Institute of Chartered Surveyors said house hunters were returning to the UK residential market after the EU referendum but the lack of supply meant there were not enough homes available for them.
Prices continue to rise, with 23% more surveyors seeing growth in October compared to 18% the previous month.
Interest from prospective homebuyers increased for the second consecutive month, with 10% more respondents reporting a rise in demand from buyers in October rather than a fall.
Simon Rubinsohn, RICS chief economist, said: “The dire shortage of available housing across the UK is continuing to push prices upwards, regardless of the uncertainty linked to the ongoing discussions surrounding Brexit.
“We are only weeks away from the Autumn Statement and it will be interesting to see what measures – if any – the Chancellor will put in place to increase housing supply and create a more affordable market.”
RICS said that 18% of surveyors predict a rise in prices over the next three months, with price expectations now positive in all areas of the UK over the near term except in London.
Richard Sexton, director of e.surv, said: “These results show that confidence within the housing market continued to sustain momentum last month. With interest rates still at record lows, many buyers are realising that now is an affordable time to borrow. As a result, the market remains resilient and we are seeing a growing number of mortgage approvals for first-time buyers in particular.
“However, with supply still tight, rising house prices remain a problem. We therefore cannot afford to overlook the ongoing housing shortage in the UK, which continues to eat away at the hopes of many would-be homeowners.
As the Autumn Statement approaches, many will hope that the Chancellor can address these deep-rooted issues in our housing market. Above all else, we need to close the gap between supply and demand and bring home ownership back into reach for the hard-working working Britons.”
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