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The UK鈥檚 housing market continued to show signs of recovery last month, with rising house prices and increased demand, according to the latest RICS housing market survey.

The survey found 21% per more surveyors reported prices rose rather than fell in June, making it the strongest month for house prices since January 2010.

The survey also found:

• The outlook for future prices is strong with a net balance of 23% more respondents reporting that prices will rise rather than fall over the coming three months
• This rise in prices has mainly been fuelled by increasing numbers of prospective buyers returning to the market. Last month a net balance of 38% more chartered surveyors reported a rise in new buyer enquiries
• Demand from prospective buyers has now risen month on month since January and is currently showing its fastest rate of growth since August 2009
• Surveyors also expect home sales to rise over the coming three months, with a net balance of 45% more respondents predicting sales will increase, up from 36% in May. The RICS said this was the most positive reading in this series鈥� history, which began in April 1999
• The rental market continues to be important in providing housing. Overall demand for rented property actually rose slightly during June, to a net balance of 27%, up from 21%

Peter Bolton King, RICS global residential director, said: 鈥淎fter what has seemed like a very long wait we are finally starting to see what looks like the beginning of a recovery in the housing market.

鈥淚t is important to remember that activity levels still remain depressed by historic standards but the various initiatives designed to encourage the provision of finance into the market do appear to be paying dividends.

鈥淒espite the increased interest in buying a property, our numbers continue to show that demand from would-be tenants remains firm and that rents are likely to continue to edge upwards over the next twelve months.

鈥淎s the cost of shelter moves higher, it is absolutely critical that the government continues to focus on its role in supporting the delivery of more new homes into the market.鈥�