UK house prices edged higher in April, industry research showed on Thursday, as demand continued to outpace supply.
According to the latest RICS residential market survey, 80% of respondents reported a rise in house prices across the UK in April, up from 74% in March.
Around 10% saw an increase in new buyer enquiries, the eighth successive month the survey has produced a positive net balance, while -1% of respondents said new listings were falling instead of rising. Agreed sales were flat, having risen in March and February, with a net balance of -2%.
However, looking further ahead, and respondents were more pessimistic. While near-term sales expectations remained positive, the net balance for the year ahead eased for the fourth consecutive month, with -4% expecting sales to fall as interest rates rise and household budgets come under pressure.
House prices are expected to continuing rising but at a lesser degree than before. A total of 62% forecast a rise, compared to 78% in February.
Tarrant Parsons, economist at the Royal Institution of Chartered Surveyors, said: “Despite growing macro headwinds in the form of cost of living pressures and higher interest rates, the UK residential market continues to see modestly positive trends in new buyer enquiries.
“For the time being at least, even though there is a lot of caution about the future economic landscape, it seems that limited supply, coupled with steady demand growth, are still the overriding drivers of house prices.
“As such, there is little evidence at this stage of house price inflation losing much momentum.”