House prices expected to rise amid shortage of properties

Hopes for a recovery in Britain’s housing market are rising again, according to a leading survey that predicts that property prices will rise over the next three months. The Royal Institution of Chartered Surveyors (RICS) will today say the balance of its members who expect prices to rise rather than fall in the next three months has climbed to 8 per cent, the highest reading since April last year. RICS believes part of the improved optimism comes as a result of demand from new buyers outstripping supply. However, a spokesman warned: ‘Although demand for property is continuing to rebound, it still remains low from a historical perspective. Crucially it is the lack of supply that is helping to underpin prices at the present time.’