The shortage of UK homes on the market is slowing the percentage rate at which house prices are falling, the average property lost just 0.1 per cent of its value during May, following a strong increase of 1.1 per cent in April; surveyors expect house prices to rise over the next quarter,  which will be the first increase for more than two years.

The Royal Institution of Chartered Surveyors (RICS) said:

“A low level of properties on the market, combined with increasing home buyer inquiries, was providing a platform for “modest price increases”.

All regions of the country saw a slight improvement in house moves, as the annual rate falls, except London, the North West and Northern Ireland, where prices have fallen by 23.2 per cent during the past year.