The misalignment between housing supply and demand continued into November, shows the newest report from the Royal Institution of Chartered Surveyors (Rics).

Participants in the monthly residential market survey provided a net balance of 13% for new buyer enquiries, which is up on the 11% seen in October, while a net balance of -18% saw new listings fall.

“A lack of stock is therefore driving competition between prospective buyers, which is resulting in house prices being pushed higher,” concludes Rics, reporting a net balance of 71% of participants reporting an increase in prices.

The survey also gives a net balance of -9% for agreed sales, which is the fifth sequential month of negative results for this metric.

A net balance of 66% of respondents believe prices rising over the next tear.

A supply and demand imbalance is also evident in the lettings market. Here, a net balance of 48% saw a rise in demand while landlord instructions are marked by a net balance of -24%.

Regarding rent rises, a net balance of 49% see this happening over the near time over the near term and participants see a 4% rise in rent prices over the next 12 months.

Rics chief economist says of supply and demand, which he says is a strong theme in both contributor comments and hard data, “unless this trend is reversed soon, transaction levels may flatline in 2022 with limited choice proving more significant than any shift in the interest rate environment for new buyers.

“The imbalance compared to the demand trend is, meanwhile, likely to continue to be a key factor supporting prices and indeed, even if the cost of mortgage finance does begin to edge up, it is likely that house prices will continue to move higher through the coming year, albeit at a somewhat slower pace than over the past twelve months.”

MT Finance director Tomer Aboody adds: “This trend will continue in the months ahead whether interest rates rise or not, since buyers are ready, willing and pushing to buy.

“Can more sellers be encouraged to sell? Possibly. There is a strong argument for reforming the stamp duty structure for downsizers in order to encourage more sales.

“Many of the older generations may be staying put in their homes because they do not wish to pay excessive tax costs via stamp duty, money they would rather pass onto their children. Removing or reducing their stamp duty would nudge them into action, freeing up more homes for family buyers.”