House prices in the UK will increase 8% next year, the RICS has forecast.
It says the rise will be driven by the “acute imbalance between burgeoning buyer demand and sluggish supply, with new instructions to estate agents close to stagnating”.
The RICS says there will be price rises across the country, led by an 11% increase in London.
It is also forecasting 1.2m transactions next year, up from 1.05m this year, but well short of the 1.67m back in 2006.
Meanwhile, the NAEA has reported that the percentage of first-time buyers rose last month to its highest level since 2009, but that the supply of stock fell back again.
According to the NAEA, an average of nine homes was sold per estate agency branch last month – with two going to a Help to Buy purchaser.