U.K. house sales hit a six-year high in March, a survey revealed on Thursday, but a supply shortage continues to send prices soaring.
The Royal Institution of Chartered Surveyors (RICS) study forecast property prices in Britain would rise 6 percent yearly over the next five years, fueling fears the market is in bubble territory.
RICS’ survey showed that the average number of houses sold per surveyor in March rose to 22.7, the highest since February 2008.
Simon Rubinsohn, chief economist at RICS, was confident the property bull run had further to go.
“I think we are still a third down on the high watermark in terms of activity, and in fact, in many parts of the country, we’re really only just beginning to see a real emergence from what was quite a stagnant property market for quite some time,” he told CNBC in a phone interview.
“So I think…in terms of activity levels, (we have) quite a way to run.”
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