New data shows that the real estate market is seeing increasing demand, but supply “continues to fluctuate,” leading to rising prices.

The number of new properties coming onto the market in the property market has fallen for the third year in a row, according to a new report from the Royal Institution of Chartered Surveyors.

Valuers across the UK reported a decline in the number of new property listings, with the net balance at -34% in June, down from -24% in May.

“With demand rising and supply continuing to weaken, it is no surprise that this has had an upward effect on property prices, with 83% of respondents overall reporting an increase,” the report said.

“Strong” increases continued to be reported across the UK, particularly in Yorkshire and the Humber, Northern Ireland and Wales.

Meanwhile, the rate of new inquiries from potential homebuyers appears to be moderating. The net balance of respondents, which increased in June, fell to 14% from 43% in April.

This is the case in all regions of the UK as the stamp duty exemption ended on 30 June.

The threshold for stamp duty, a tax on property transactions in England and Northern Ireland, was £500,000 ($690,669) for residential property purchases until June 30. That deadline was originally set to end in March but was extended by the government.

Looking to the future, a total of 56% of respondents expect prices to continue to rise nationally over the next twelve months.

Read more: UK house prices fall for first time since January as stamp duty holiday ends

In the rental market, tenant demand accelerated during the month of June, with a net increase of 60% (compared to 48% in May).

The respondents assume that rental growth will increase slightly as a result.

“Respondents to the latest RICS survey are more or less unanimous in emphasizing that there are renewed supply issues, whether in the purchase or rental market,” says Simon Rubinsohn, chief economist at RICS.

“The role of credit channels and the long period of extremely low interest rates cannot be ignored. Nevertheless, it is crucial that the government creates the conditions to support higher levels of new-build development to address the growing challenge of affordability.”

Earlier this week, a report from Halifax Bank said average house prices in the UK fell by 0.5 percent in June, the first monthly decline since January.

“It was barely a week ago that Nationwide magazine reported that annual inflation rose to 13.4 per cent in June. The fact that the Halifax figure is so far off, and even moving in the opposite direction, suggests that the rate of price increases may finally have peaked,” said Jonathan Hopper, CEO of Garrington Property Finders.

The story continues

“But prices are still rising and that doesn’t mean buyer demand has peaked. Tens of thousands of buyers are still keen to buy, even without the prospect of a stamp duty saving.”

Watch: Why do house prices rise during a recession?