Valuers have reported the first nationwide increase in house prices since July 2018, the latest survey from the Royal Institution of Chartered Surveyors revealed.

January also saw an increase in three key measures – enquiries from buyers, new property listings and sales agreed – as market confidence continued to build.

The number of respondents reporting a rise in new homes being listed for sale increased from a net balance of 11 per cent in December to 19 per cent in January.

Respondents reporting an increase in new buyer enquiries rose from a net balance of 19 per cent to 23 per cent.

Surveyors also reported a rise in agreed sales for the second month in a row with a net balance of 21 per cent. 

As sales picked up, pressure on house price seemed to be mounting.

The number of surveyors reporting an increase in prices reached a net balance of 17 per cent, which is the first time the figure has been positive at a national level since July 2018. 

This was driven by growth in London and the South East, where the net balances turned positive territory for the first time in several years

Respondents expect prices to continue rising over the next three months and in the year ahead.

Despite the improvement in sentiment and activity, January’s figures follow a sustained period of falling supply, meaning average stock levels remain very low at an average of 43 properties per branch.

In the lettings market, demand for rental properties rose in the three months to January, with a net balance of 24 per cent of respondents reporting an increase. 

Landlord instructions fell for the fifteenth successive quarter, with a net balance of -13 per cent.

Rics says that given this sustained mismatch between rising demand and falling supply, rents are expected to rise in the next three months, with respondents predicting an increase of  just over 2 per cent in the year ahead.

Rics chief economist Simon Rubinsohn says:“The latest survey results point to a continued improvement in market sentiment over the month, building on a noticeable pick-up in the immediate aftermath of the General Election. 

“The rise in new sales instructions coming onto the market is a noteworthy and much needed development, given the lack of fresh listings over the past few years had pushed stock levels to record lows. 

“It remains to be seen how long this newfound market momentum is sustained for, and political uncertainty may resurface towards the end of the year. 

“But, at this point in time, contributors are optimistic regarding the outlook for activity over the next twelve months.”

North London estate agent and former Rics residential chairman Jeremy Leaf says: “There is more activity but we are not yet seeing enough realistically-priced instructions to satisfy demand in most price ranges as stock levels overall remain low.

“We probably won’t know until the end of February/beginning of March whether this renewed interest can translate into robust sales giving us more confidence that this housing market recovery is robust and sustainable.”