According to the latest market report from the Royal Institution of Chartered Surveyors (RICS), demand for housing kept rising in June and is set to continue through the summer months, with accompanying growth in house prices and rising rents.

Its surveyors’ poll found increasing numbers of buyers were returning to the market, with 38% of respondents seeing an increase in business.

It said that government schemes such as Funding for Lending were having an impact on the market and that demand from prospective buyers is growing at the fastest rate since August 2009.

Surveyors expect house price rises to continue in the next three months with 45% predicting increases compared with 36% at the end of May. RICS said this was the most positive response since it began polling surveyors in April 1999.

Peter Bolton King, RICS global residential director, said that demand for housing would see rents rise further in the next year. He called on the government to ramp up housebuilding to cater for the demand.

“Despite 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.

“As 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.”