Housing starts are set to rise to 155,000 from 125,000 this year - but will be insufficient to address the more rapid growth in population, RICS said.
We expect all areas of the country to see prices increase, with London, predictably, recording the biggest rises.
The improving economic picture aside, this is largely down to the fact that buyer numbers considerably outweigh the amount of homes on the market.
While the number of new homes being built is now on the rise, it still won't be anywhere near enough to meet demand and we expect the problem of insufficient housing stock to be the main driver behind price increases over the next 12 months.
More top news
An Irish nanny freed after baby murder charges in the US were dropped describes her 'nightmare' and branded the prosecution a 'scandal'.
A man became so frustrated with noise from a nearby building site that he shot a builder with an air rifle, police say.
A backbench revolt over proposals to ease purdah restrictions on the EU referendum has led to a government climb down.