Interest rate rises have not deterred would-be homebuyers, according to the latest Royal Institution of Chartered Surveyors(RICS) report.

The number of homes available to buy were down 11% on the October 2003 rate, and close to a recent low of May 2002.

The biggest price rises in February were in Wales, and North of England.

Growth slowed

The group said prices would continue to rise as the supply of properties failed to keep up with demand.

It also said the number of chartered surveyors in England and Wales reporting price rises was at its strongest since late 2002.

The RICS survey follows that of property website Rightmove, which reported on Monday that house prices in England and Wales had experienced their second fastest rise since May 2002.

However RICS said the pace of price growth slowed in most regions during February, but there was strong acceleration in the South West and North of England.

'Conditions to relax'

RICS spokesman Ian Perry said: "The February market seems to have moved right back to where it was in the autumn last year, with a lack of suitable properties available for a large number of seriously committed buyers.

"Easter is traditionally a time of year for people to put their houses on the market, but only time will tell what happens this year.

"We expect the tight market conditions to relax, as rising interest rates and mortgage payments put a dampener on the market.

"However, a positive economic environment will prevent a marked slowdown."