Homebuyer demand also increased for the second consecutive month, with 10% more RICS members reporting a rise in demand rather than a fall.
Property supply fell for the eighth consecutive month in October, the RICS UK Residential Market Survey has revealed.
Homebuyer demand also increased for the second consecutive month, with 10% more RICS members reporting a rise in demand rather than a fall.
Prices continued to increase, with 23% more surveyors reporting growth rather than a decline, though in London 16% more members experienced house price falls.
Simon Rubinsohn, RICS chief economist, said: “The dire shortage of available housing across the UK is continuing to push prices upwards, regardless of the uncertainty linked to the ongoing discussions surrounding Brexit.
“We are only weeks away from the Autumn Statement, and it will be interesting to see what measures – if any - the Chancellor will put in place to increase housing supply and create a more affordable market.”
Demand in the lettings market picket up in the three months to October, with 29% more surveyors reporting a rise in enquiries.
As a result 34% more respondents expected rents to pick up in the months to come.
However with sluggish demand in London 12% more respondents predicted a fall in rental values in the next three months.
Richard Sexton, director of e.surv, said: “As the Autumn Statement approaches, many will hope that the Chancellor can address these deep-rooted issues in our housing market.
“Above all else, we need to close the gap between supply and demand and bring home ownership back into reach for the hard-working working Britons.”
