LONDON (MktNews) - House prices in England and Wales rose in the three months to February, the Royal Institution of Chartered Surveyors said Thursday.
The balance of chartered surveyors across the country reporting price rises in the three months to February stood at 32%, after 24% in January.
Prices have risen consistently for the past five months, after earlier interest rate rises and the abolition of MIRAS (mortgage interest relief at source) served to take some heat out of buyer activity last summer.
Moreover, the prospect of a price war among mortgage lenders has rekindled expectations that house prices will rise "modestly" this year, RICS said.
The survey also showed that prices are expected to increase in the next three months, with a balance of 61% of surveyors anticipating price rises. The pattern is the same for sales, with 75% expecting a rise.
RICS national housing spokesman Ian Perry said, "The housing market is buoyant at the moment. The signs are that this will continue, as there is traditionally an upswing in activity in the market at this time of the year.
"But uncertainty over the economy does remain a dark cloud on the horizon."
He also said that expectations that mortgage rates could fall further has helped to lift new buyer enquiries and should translate into new sales in coming months.
The average number of sales per chartered surveyor estate agents in February was 30, the same as in January. However, a strong surge in buyer enquiries points to an imminent rise in sales and is further supported by surveyor sales expectations, which rose to their strongest level on record.
The average number of properties on the books was down slightly to 70 from 73 in January.
Perry also said, "In rural areas, the foot-and-mouth outbreak will undoubtedly have had a dampening effect on sales, but it is unlikely to have a lasting effect on property prices, even in those parts of the country affected by the disease."