LONDON (Reuters – British house price inflation rose in the last month thanks to a shortage, which suggested that further price hikes were possible, according to a carefully watched survey.

Royal Institution of Chartered Surveyors reported that 70% of its members had reported an increase in property prices in October, up from 69% in September.

According to Reuters, economists surveyed 65%.

In October, the survey revealed the first rise in house prices balances since May.

Surveys also show that there has been continued price rise in houses since July. In England, Northern Ireland and Wales, a one-year exemption from the stamp tax on house purchase was cut in half.

In April Scotland, the incentive ended. It was also terminated in full in England and Northern Ireland by September.

Simon Rubinsohn RICS Chief Economist said higher interest rates from the Bank of England were an afterthought to the low supply of houses on the market.

Despite investors’ expectations, the BoE did not raise rates in its November policy decision. However, top central bank officials have stated that borrowing costs will rise soon.

Rubinsohn stated that “the inventory on the agents’ books seems to have fallen back towards historical lows, and this appears to be underpinning both current price trends and future expectations,”

While there will be some activity decline in the immediate wake of expiry of stamp duty breaks, the majority of activity indicators are still solid. Buyers looking to move forward could face a shortage of properties available.

Survey results showed that over two thirds of surveyors expected house prices will continue increasing in the coming 12 months.