HOUSE prices are still on the rise, according to the latest survey.

The latest Royal Institute of Chartered Surveyors quarterly housing market survey for England and Wales for the three months to June 2002 shows that the continuing shortage of houses on the market is the reason for inflated prices.

In the West, house price inflation has eased slightly for the second consecutive month.

But although it shows signs of easing, it still remains at a high rate, with 57 per cent more surveyors reporting a rise in prices than reporting a fall.

Around the country the increase in reported price inflation was highest in the East Midlands, followed by the West Midlands.

The South East and London also showed increases as they caught up with the rest of the country, following a dip at the end of last year.

Contrary to the national trend, which has seen the average number of houses on chartered surveyor estate agents' books fall for the fifth consecutive month, West surveyors have seen an increase in June to 55, from 44 last month.

However, this is still down seven per cent on the same period last year.

In contrast, new instructions for West estate agents are reported to have deteriorated for the fifth month and at the fastest rate since January 2000.

Mark Wightman, senior partner at Dreweatt Neate in Swindon, said: "In Swindon, there is currently a shortage of properties in some sectors, particularly the more interesting ones like village properties and small older properties with character.

"In town, demand is for the lower valued properties which are also in short supply."