'Significant increases' in homes coming onto the UK property market

Chartered surveyors reporting widespread increase in new instructions

Rising prices and growing demand from buyers have produced 'significant increases' in homes coming onto the UK property market, according to the Royal Institution of Chartered Surveyors

During August, 26 per cent more chartered surveyors reported increases not decreases in new instructions, up from 16 per cent in July. Around 40 per cent more surveyor salso reported rises rather than falls in house prices across the UK.

Peter Bolton King, RICS Global Residential Director, said:"It's not surprising that more and more people are looking to sell their homes. The buyers are out there and prices are on the up so if you're looking to move it's a good time to do so. What we don't wish to see, however, is prices rise to such an extent that they become unaffordable. For the market to work properly, it's vital that property is both accessible and affordable, and we'll be monitoring the situation very carefully as the housing sector continues to recover."

Earlier today, the Bank of England announced that gross mortgage lending had reached its highest point for six years, 13 per cent higher than this time last year.

Mark Harris, chief executive of mortgage broker SPF Private Clients, said: "Funding for Lending and Help to Buy are resulting in cheaper mortgage rates, which is encouraging borrowers to finally take the plunge. More borrowers are opting for fixed rates which is no surprise when you consider just how cheap they are. However, while there is potential for further reductions the likelihood of rates rising is higher so borrowers should consider moving now, rather than waiting for already historically low rates to fall further still."