House prices continue to rise as new listings fail to keep up with the number of interested buyers, according to the RICS UK Residential Market Survey, May 2021.

In May, the number of people looking to buy a new home continued to rise, with 32% more respondents noting an increase from prospective buyers. However, supply cannot keep up with this increase in demand, as a net balance of -21% respondents reported another fall in the number of new listings being brought to market.

This widening disparity between new buyer enquires and new instructions sees the gap at its widest since November 2013, signalling a real mismatch. The RICS data suggests however, that sales instructions could improve over the coming months, as survey participants are reporting that the number of market appraisals being undertaken is up on a twelve-month comparison (net balance +24%).

As the market sees the impact of people trying to beat the stamp duty holiday coming to an end, newly agreed sales rose once again. This month, +30% of respondents reported an increase, but this is down from +47% in April.