House prices in Scotland are continuing to rise as the number of properties for sale falls, a report has found.

The Royal Institution of Chartered Surveyors (Rics) said price growth has been fuelled by the lack of supply over the last year.

Interest from prospective buyers increased in October, with 14% more respondents to the monthly Rics survey reporting a rise in demand.

A net balance of 40% of those surveyed reported price growth, up from a net balance of 33% in September.

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Uncertainty over Brexit negotiations was expected to have a negative impact on the housing market but Rics found the shortage of homes available to buy has had a knock-on effect on prices and demand.

Prices are expected to grow further over the next three months with surveyors calling on Government to increase the housing supply.

Simon Rubinsohn, Rics chief economist, said: “The dire shortage of available housing across the UK is continuing to push prices upwards, regardless of the uncertainty linked to the ongoing discussions surrounding Brexit.

“We are only weeks away from the Autumn Statement and it will be interesting to see what measures – if any – the Chancellor will put in place to increase housing supply and create a more affordable market.”

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In the Scottish lettings market, tenant demand has also picked up, with a net balance of 37% more surveyors reporting a rise in inquiries.

Demand in the rental market also continues to outpace supply with costs expected to rise during the next three months.