House prices rising at fastest rate since 2006

Britain’s estate agents have reported the most widespread surge in house prices since the pre-crash days of late 2006, with cheap money and a shortage of properties creating boom conditions in parts of the country.

In its monthly snapshot of the market, the Royal Institution of Chartered Surveyors (RICS) recorded evidence of gazumping and sales of £5m homes, and predicted that the pick-up in selling prices would continue over the coming months.

Although sales of homes remain around half the levels seen before the crash, a separate report also out today from the British Retail Consortium found that shops selling household goods and furniture were benefiting from a rising property market.

RICS spokesman Jeremy Leaf said: ‘Although the supply of property is beginning to pick up, it is still insufficient to keep pace with the increase in demand, which points to further price gains in the near term.’