U.K. house prices accelerated further during September, following a slump in the immediate aftermath of the country’s June 23 vote to leave the European Union, according to a survey of property brokers.
The Royal Institution of Chartered Surveyors said in a report issued in the U.K. on Thursday that a larger share of its members reported an increase in prices compared with the previous two months.
The survey’s price indicator stood at plus 17 in September, after it fell to a three-year low of plus 5 in July. The increase means a higher percentage of property brokers reported a price increase compared with those reporting a decline. The reading for August was revised upward slightly, to plus 13.
Demand for residential property in the U.K. rose in September for the first time in seven months, the survey showed, propping up prices. But the key factor supporting price growth was a continued shortage of properties for sale, the surveyors institution said.
“The market does now appear to be settling down following the significant headwinds encountered through the spring and summer,” said Simon Rubinsohn, the RICS’ chief economist.
Economists are closely watching house prices as a potential indicator of the overall health of the world’s fifth-largest economy. Over the past three decades, U.K. households have cut spending every time house prices have fallen.
The Bank of England has said it expects the housing market to be one of the sectors of the economy that could be hurt in the wake of the Brexit vote. Officials forecast a decline in prices on average over the coming year and a drop in investment in new housing.