House prices jumped once again in October as rocketing demand from would-be buyers dwarfed the amount of properties coming onto the market, according to the latest RICS Residential Market Survey.
The proportion of chartered surveyors reporting price rises hit an 11-year high, as the net balance of respondents reporting rises jumped to 57%.
This is the highest reading since June 2002 and demonstrated the impact that the imbalance between supply and demand is having on the market.
Surveyors across the country said that while Help to Buy is boosting buyer numbers, a lack of new instructions from vendors is proving problematic.
Demand for rented accommodation is now rising more modestly, as Help to Buy allows more tenants to buy their own home by offering loans at higher LTVs.
A net balance of only 11% of respondents reported rises in interest from potential tenants during October, the lowest reading in over 10 years.
With the market continuing to grow across the UK, the number of homes sold also saw a big jump.
In the three months to October, chartered surveyors sold an average of 20.3 homes, the highest amount since February 2008.
Significantly, almost every region of the country saw transaction levels increase as the recovery spread beyond the traditional economic powerhouse of London and the South East.
Respondents are optimistic that the flourishing market is set to continue, with expectations for future prices and transaction numbers predicted to increase over the next three months.
Simon Rubinsohn, RICS chief economist, said: “It’s no secret the housing market is gathering some momentum and that buyer numbers are on the rise right across the country.
"A greater willingness by lenders to increase LTVs on mortgage products allied to the Help to Buy scheme has meant that more and more first time buyers are in a position to enter the market. .
“In spite of this, the amount of homes currently up for sale is still nowhere near enough to keep up with demand. In order for the market to function correctly, this imbalance urgently needs to be addressed."
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