The CLG figures revealed that house prices rose by 1.4% in July to reach an average of £196,338, while the quarter-on-quarter change showed an increase of 2.1%. Prices have now increased every month since February.
Stuart Law, chief executive of Assetz, said there were clear signs of a sustained house price growth with no evidence of a dip.
He added: “It appears that this year is firmly on course to be a positive year for overall house prices. We may be moving into a phase of stability. Supply has been too suppressed over the past two years for the market to be flooded with property beyond the current level of demand.”
The RICS results show that 12% of surveyors observed an increase in new instructions in August, compared to 4% in July. The number of sales also rose with surveyors selling an average of 17 houses over the last three months, the highest level since May 2008.
Jeremy Leaf, spokesman for RICS, said the positive news would encourage vendors to put properties onto the market.
He added: “When vendors put more properties on the market, potential purchasers will find properties to buy, but this could present a challenge to a firmer trend in prices when interest rates rise.”
Richard Sexton, director of business development at E-Surv Chartered Surveyors, added that the market would stabilise further when transactions increased.
