Property prices rose again in January, but bad weather caused a reduction in the number of transactions, according to the Royal Institution of Chartered Surveyors (RICS).

RICS members remain optimistic, however, about a continuing recovery in the housing market this year, with predictions of a "spring bounce" in the offing.

More surveyors reported a fall rather than an increase in buyer inquiries in January, for the first times in 14 months.
 
"The cold snap in January clearly has a huge impact upon both supply and demand in the housing market, with activity coming to a halt amid the seasonal chaos," said Ian Perry of RICS.

"Activity and interest is likely to pick up in the coming months as the market experiences a spring bounce."

As for property prices, 32% more surveyors reported a rise than a fall in January, compared with 30% in December. This was partly caused by a shortage of better quality houses on offer.

"House prices are likely to rise in the short term, but if more supply continues to come onto the market, it is possible that the market will run out of steam in the latter part of the year," Mr Perry said.

The number of surveyors expecting house prices to rise increased in January from 12% to 24%, while the number of surveyors expecting sales to pick up over the next three months rose from 7% to 24%.

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