House hunters are returning to the UK residential market after the June referendum, but may face a lack of purchase options as the supply of available homes remains restricted, according to the October RICS UK Residential Market Survey.

Across the UK, interest from prospective homebuyers increased for the second consecutive month with 10% more respondents reporting a rise in demand from buyers in October rather than a fall. Prices continue to rise with 23% more respondents seeing growth rather than a decline, up from a net balance of +18 in September. 

London remains the exception, recording an eighth consecutive monthly decline with 16% more respondents in the capital reporting a fall rather than rise in prices –  this figure more closely reflects inner London rather than the outer boroughs, many of which are still seeing significant price growth.

Simon Rubinsohn, RICS chief economist, said: “The dire shortage of available housing across the UK is continuing to push prices upwards, regardless of the uncertainty linked to the ongoing discussions surrounding Brexit. We are only weeks away from the Autumn Statement, and it will be interesting to see what measures - if any - the Chancellor will put in place to increase housing supply and create a more affordable market.”