House prices rise as new

NEW demand for houses is outstripping supply coming onto the market and pushing house prices up, the Royal Institution of Chartered Surveyors (RICS) will say today.

The net balance of surveyors reporting rising rather than falling prices jumped to 22 per cent in September, the highest net balance since May 2007. New demand growth has slowed since June but September’s reading of was still one of the highest on record. But only four per cent reported an increase in new instructions compared to 12 per cent in August. Meanwhile, separate data from the Council for Mortgage Lenders (CML) showed that house purchase lending continues to recover but remortgaging continues to decline.