UK property prices are set to rise by 0.7% over the next three months, according to the ReallyMoving House Price Forecast.

The homemoving services provider said the strongest gains will be seen in October, as super low mortgage rates drive demand, while supply remains scarce.

The predicted rise is more muted than we’ve seen in recent months, as the impact of the stamp duty holiday ‘works its way out of the system’ and the post-lockdown surge in demand begins to subside.

Reallymoving said that conveyancing quote volumes returned to more normal levels for the time of year last month and remain unchanged in August, indicating that buyer demand is settling back down following an extraordinary period of housing market activity and growth.

Rob Houghton, CEO of the firm, said: “The rate of house price increases over the last year has been remarkable but it’s been a difficult period for first time buyers and we welcome a return to more stable levels of growth.

“The housing market is in good shape heading into the autumn as the impact of the stamp duty holiday works its way out of the system, demand returns to more normal levels and once again the market proves its underlying resilience.”