U.K. House Prices Pushed Higher for Sixth Straight Month

U.K. House Prices Pushed Higher for Sixth Straight Month

The FINANCIAL -- A record-low number of homes for sale in the U.K. helped push prices higher in July for the sixth-straight month, according to a survey of estate agents.

U.K. estate agents had an average of 47 properties for sale last month, while demand grew at its fastest pace since February 2014, according to The Royal Institution of Chartered Surveyors.

The shrinking affordability of homes amid high prices and an acute shortage has become a consistent topic of discussion from pubs to parliament. The survey results August 12 highlight "the very real challenges being presented by the housing market," said Simon Rubinsohn, RICS chief economist.

"More worrying still is the suspicion that the imbalance between supply and demand will lead to even stronger price gains over the next 12 months," Mr. Rubinsohn said.

The survey showed 68% of respondents perceive current market valuations in their areas to be either around or below fair value at present. But in London, 60% of contributors thought their local market was "currently overpriced to some extent," the report said.