The housing market is booming as buyer demand continues to surge.

A net balance of 44% of respondents of the latest RICS survey for April saw enquiries from new buyers increase, with demand positive in every region of the UK.

But while demand continues to rise, supply is falling, with new instructions down 4% month-on-month.

The average number of properties for sale per estate agent dropped to 40 in April, having hit 46 in December 2020.

The supply-demand imbalance appears to be placing upward pressure on property prices, with a net balance of 75% of respondents to the RICS survey saying that house prices had risen in April, compared to 62% in March.

Meanwhile, there was a slowdown in the net balance reporting that agreed sales had risen – from 48% in March to 34% in April.

RICS chief economist Simon Rubinsohn said: “Housing supply, or more pertinently, the shortfall in supply relative to demand is the key theme coming through loud and clear from respondents.

“While it may be simplistic to assume that higher numbers alone can redress the affordability issue particularly in a low interest rate environment, an uplift in delivery does have a role to play.

“Planning reforms as outlined in The Queen’s Speech are likely to provide part of the answer although it is critical, particularly with regard to permitted development rights, that quality and safety are not compromised.”

Jeremy Leaf, north London estate agent and a former RICS residential chairman, points out that property listings are increasing but not fast enough to keep up with that demand.

He said: “Sales agreed are rising and fall-through rates dropping as the 30 June deadline for stamp duty tapering looms ever larger on the horizon.

“Economic recovery, low interest rates, faster vaccine rollout and unexpected lockdown savings, are giving confidence that prices may soften at worst at some point, rather than correct significantly.

“The new high loan-to-value mortgages are further underpinning activity and demonstrating to many that the government also has a vested interest in propping up house-price growth.”

Rich Horner, head of individual protection at MetLife, believes that “the fear of missing out” has placed power in the hands of sellers.

He said: “Many listings being sold at inflated prices that would have been inconceivable a year ago. But the market knows that this level of activity and house price growth is not sustainable, it’s a question of when prices stabilise rather than if.”

Tahir Farooqui, CEO of Canopy, commented: “Demand for new properties continues to soar, hiking up asking prices and shrinking the number of available homes. But there’s a risk that the property market is being artificially propped up by measures like the stamp duty holiday.”