The July research showed new buyer enquiries have now risen for nine consecutive months with 63% of surveyors now noting a rise. In the highest reading since April 2007, 8% more chartered surveyors expected prices to rise rather than fall.

There were signs the rebound in enquiries has fed through into increased transactions as newly agreed sales reached the highest level since August 1999. Surveyors sold an average of 15 properties each in the past three months, compared with 13 during the three months from April to June.

In further evidence of the emergence of a North/South divide in prices, chartered surveyors in the South reported rising prices while those in North reported falling prices.

Jeremy Leaf, spokesperson for the RICS, said demand for property has continued to rebound but still remained low.

He added: “Crucially it is the lack of supply that is helping to underpin prices at the present time. If mortgage availability remains insufficient to meet the increase in buyer demand, then it is possible that prices may slip back again especially if unemployment continues to rise and mortgage rates increase.”

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