HOUSE prices in the South East have risen for the third consecutive month, reports the latest housing market survey from the Royal Institution of Chartered Surveyors (RICS).

In January, more than a quarter of South East surveyors reported price rises, compared to only seven per cent in December and 11 per cent in November.

The South East region has the highest percentage of surveyors reporting a rise in house prices.

In London 40 per cent reported a rise, which was the highest in England, with the West Midlands the lowest with just 11 per cent.

A quarter (23 per cent) of all surveyors also reported a price increase up to two per cent over the past three months. And the same amount of surveyors expected prices to rise, which is a 38 per cent increase on the same time a year ago.

New buyer enquiries in the South East rose for the eighth consecutive month, making it the longest period of uninterrupted rises recorded since 1999.

Agreed sales were also up again for the seventh consecutive month.

However the percentage of surveyors reporting new instructions fell sharply by 27 per cent, suggesting that the supply of available properties will be constrained and may fuel further prices rises.

Trevor Hines, RICS South East regional director, said: "Optimism remains above the long-term average for the survey, indicating that the recovery in activity and prices will be sustained in the months ahead.

"The current dynamics are favourable to sellers as the amount of property available to buyers remains limited. Reasonably priced properties are selling well.

"December and January are traditionally quiet months, so the outlook for the Spring, when more people look to move, appears promising."