Demand for affordable UK housing is constantly increasing and the shortage of homes available for sale is making it difficult for any house prices to be held constant. It is applying constant upward pressure on houses and that is why housing costs continue to go north. In the latest data, Rics has outlined this trend and forecasted house price growth in some parts of the UK to increase by 8% or more in the year 2016. East Anglia is estimated to see an increase of 8% in house prices with the support of a strong jobs market.

Rics is forecasting an average rise in house prices across the UK at 6% for next year. In the report, Rics has also noted the main concern facing the UK housing market in regard to house prices. The report cites supply shortage as the primary factor which is affecting house prices and how income levels are being outpaced by increases in house prices which seem to take place each and every quarter.

This year has been especially brutal in the number of homes placed on the market. The average number of homes which are entering the market is at a record low per agent. That number is 46 and is not expected to increase before the spring. Many believe the market is experiencing a cycle currently which includes house owners seeing few houses on the market for sale and holding on to their property until more come onto the market.

Simon Rubinsohn of Rics commented on the current market trend, saying: “To a large extent it is a reflection of the strength of the underlying economy in the area.

“Housing has clearly leapt up the government’s agenda, but despite the raft of initiatives announced over the past year the lags involved in development mean that prices, and for that matter rents, are likely to rise further over the next 12 months.”

Rubinsohn added: “Lack of stock will continue to be the principal driver of this trend but the likely persistence of cheap money will compound it for the time being.”