June was the strongest month for house prices since January 2010, with 21% more chartered surveyors reporting price rises rather than falls in during the month.

According to the latest RICS Residential Market Survey, the outlook for future prices is also strong with a net balance of 23% more respondents reporting that prices will increase rather than decrease over the coming three months.

RICS said the boost in prices had 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.

Now 45% more respondents, up from 36% in May, predict that home sales will increase – the most positive reading in this series’ history, which began in April 1999.

Demand for rented property rose by 6% during June to 27%.

Peter Bolton King, RICS’s global residential director, said: “After 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. It 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.

“Despite the increased interest in buying 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 12 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.”