UK house prices ‘to rise 3%’ on shortages

British house prices are likely to rise on average by 3% next year as a shortage of new homes coming to the market continues to push up prices, the Royal Institution of Chartered Surveyors (RICS) has said.

Britain’s property market slowed immediately after the vote in June to leave the EU bt since then it has fared better than most analysts expected and there have been signs of a stabilisation in demand for housing.

“Although recent announcements by the government on housing are very welcome, the ongoing shortfall of stock across much of the sales and lettings markets is set to continue to underpin prices and rents,” said RICS chief economist Simon Rubinsohn.