British house prices rose at their fastest rate since the end of 2002 during September, figures showed today.
The Royal Institution of Chartered Surveyors said uncertainty about the market, seen earlier in the year, had given way to firmer conditions, boosted by very low interest rates and stable employment conditions.
The group said 34 per cent more charted surveyors reported an increase in house prices during the three months to the end of September than those who said there had been a fall, compared with just 9 per cent in August.
At the same time economic improvements sparked the biggest increase in people looking to buy a new house for more than four years, with 49 per cent more surveyors reporting an increase in buyer inquires, more than double the 18 per cent who saw a rise the previous month.
Property sales also rose to an average of 29 per chartered surveyor estate agent, up from 27 per cent in August, and although this was 22 per cent lower than during the same period of 2002, it suggested activity was recovering.
The group added that the recovery in demand and sales during the past few months had led to the average number of properties on chartered surveyor estate agents' books to fall for the fourth consecutive month to just 68.
Going forward, 43 per cent more surveyors expect house prices to rise over the next three months than those who think they will fall, while a similar proportion expect sales to pick up following the surge in inquiries from potential buyers.
PA