Home sales surged last month with strong demand from buyers not letting up, even in spite of an uplift to increase rates.
The latest RICS Residential Market Survey reported a net balance of nine per cent more respondents saying sales were increasing. This represented the strongest reading since May 2021.
The survey also reported a 17 per cent increase of respondents reporting an uplift in new buyer enquiries.
The housing market has experienced historically low stock levels, driving house price growth.
In a three month forecast, RICS said it anticipates sales to continue rising but at a more modest pace.
Tom Bill, head of UK residential research at Knight Frank, said he believed the market was experiencing “the final few months” of double-digit house price growth “before supply picks up and demand begins to fray around the edges.”
He added: “UK house prices have been skewed by a lack of supply in recent months but the shelves are gradually re-stocking, a process accelerated by the arrival of spring. Meanwhile, higher inflation and rising mortgage rates will begin to put the brakes on sky-high demand. It won’t happen overnight but I would expect the return of single-digit house price growth later this year.
“While the Bank of England may adopt a more risk-averse approach to raising the base rate given the geopolitical uncertainty, mortgage rates are still playing catch-up and lenders are likely to keep withdrawing their best products.”