The Royal Institution of Chartered Surveyors said that the market was benefiting from the release of pent-up demand and the temporary stamp duty cut.

A net balance of 75% of respondents said that demand had risen during July, coupled with 59% reporting a rise in instructions to sell. This resulted in a net balance of 57% reporting that transaction levels had picked up.

However the looming rise in unemployment has made most uneasy about the future. A net balance of 26% expected transaction numbers to rise in the coming months, but this fell to -10% when they were asked to make projections for the year ahead.

“Significantly, some contributors are now even referencing the possibility of a boom followed by a bust,” said RICS chief economist Simon Rubinsohn.