The pace of house price inflation picked up last month, despite a string of signals that the market should be slowing, chartered surveyors report today, in the latest surprisingly strong result for the sector.

Property prices accelerated for the second month in a row in April. There were higher prices in every region, even though supply rose and demand appeared to fall, according to the Royal Institution of Chartered Surveyors (RICS).

Its headline net balance of surveyors reporting higher prices rose to 28.9 from 26.9. It was the eighteenth month in a row that the balance has been greater than zero, implying rising prices.

The pickup came despite a slight decline in the number of new buyer inquiries after the Bank of England’s series of interest rate rises. Rates have risen from 4.5 per cent to 5.5 per cent in only ten months.

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Meanwhile, the supply of property grew. RICS said that the second consecutive rise in instructions to sell reflected the planned introduction of home information packs (HIPs).

Surveyors reported that rising numbers of sellers are listing properties now to avoid paying the fee needed to produce the sellers’ packs from June 1.

Ian Perry, a spokesman for RICS, said: “Last week’s rate hike may not be the last as the housing market has not slowed as quickly as expected. With prices buoyant and conditions still tight, another looks likely in the summer.”

In England, price rises were driven by London and East Anglia. There were strong price rises during the month in Scotland and Northern Ireland.

Annual price inflation for the average home remains in double digits, government figures released separately yesterday showed. The Department for Communities and Local Government said that prices at the completion stage rose by 10.9 per cent in March, against the 11.8 per cent figure recorded the month before.

Alan Clarke, economist at BNP Paribas, said: “I don’t think we’ve peaked yet.”

Growth areas

How each region did*

Northern Ireland 98

London 86

Scotland 70

South East 64

East Anglia 59

North West 52

South West 46

North 36

Yorks & Humberside 25

Wales 15

East Midlands 10

West Midlands 5

*Balance of surveyors reporting rising prices minus those reporting falling prices over past three months

Source: RICS

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