Property: Cycle of frustration in market

Too many would-be buyers chasing too few properties are forcing up house prices, a report claimed yesterday. Sellers are delaying putting their houses on the market until they find a replacement property to buy, creating what the Royal Institution of Chartered Surveyors called "a self- perpetuating cycle of frustration" that raises the number of people looking, but reduces the numbers of properties for sale.

The institute's quarterly survey of the housing market questioned 268 chartered surveyors over changes in prices and the level of homes sold or for sale. Rics housing market spokesman, Ian Perry, said prices were rising in many areas - but this was because of the very restricted stock. "Hopes of even higher prices have led to unrealistic expectations and disillusionment among prospective sellers." He added that the upward pressure on house prices was likely to continue in the short term, given that interest rates were unlikely to rise before the general election, although a hike was expected before the end of the year.