The housing market is busy right across the country with no end in sight to rising prices

Ian Perry RICS

However, the pace of growth slowed in London and the South East as a result of higher overall prices and concerns over possible interest rate rises, it added.

Yorkshire and Humberside set the pace of price increases, reporting their fastest growth for eight years.

Strong price rises were also seen across the rest of England and Wales, with 57% more surveyors reporting increases than those who reported falls, compared to 49% the previous month.

RICS national housing spokesman Ian Perry said: "The housing market is busy right across the country with no end in sight to rising prices, despite many predictions that the bubble is about to burst.

'Affordability'

"Price rises are definitely being supported by the shortage of suitable properties for sale in all parts of the country, even though traditionally this is the busiest time of the year.

"In London and the South East high prices are beginning to have an impact as affordability becomes an issue. This may be reflected in other regions in the coming months."

RICS said price rises looked set to continue in the coming months, with 71% more surveyors expecting them to go up than those who were predicting falls.

But sales are expected to increase at a slower pace.

The group added that fears over interest rate increases had dampened the growth in buyer inquiries, particularly in southern England.