House price expectations at 14yr high

RICS reported that some 59% of surveyors expect prices to rise over the next three months, which represents a level of confidence not seen since September 1999.

Prices also rose for a second consecutive month in every area of Britain although the London price balance remains the highest by a considerable margin.

Mark Harris, chief executive of mortgage broker SPF Private Clients, said: “The latest RICS survey indicates that property prices continue to soar but much depends on where you live.

“While London is a micro market of its own, other parts of the country are seeing far less activity and demand, which is keeping a lid on prices. It is important to keep regional variations in mind rather than being too general about the prospects for the housing market as a single entity.”

The average number of homes sold per chartered surveyor also grew reaching 20.6, up from 15.9 in the same period of 2012.

But RICS warned that stock issues continue to plague the industry with stock levels falling to historically low levels.

Simon Rubinsohn, RICS's chief economist, said: "If there is not a meaningful increase in new homes, the likelihood is that prices, and for that matter rents, will continue to push upwards, making the cost of shelter ever more unaffordable."

RICS also predicted that house prices will increase by 3% next year and will increase by almost 5% a year over the next five years.