House prices rose by over 2% in May for the third month running. TEAM, the country’s largest network of independent estate agents, has warned that the market is becoming unsustainable and may overheat.

TEAM’s latest national survey shows that nationwide the average price of homes ‘under offer’ was £189,023 in mid-May compared with £184,248 in April, an increase of 2.6%.

On average, properties are 14.4% more expensive than 12 months ago.

The survey is based on data supplied by 558 offices of TEAM members in 16 regions across England and Wales. It reflects a daily average of 5,826 homes listed as under offer by agents in the four-week period to mid-May.

TEAM’s national chairman, Philip Muzzlewhite, commented: “The overall national trend seen in a very rapid rise in the last three months is creating fear that the market is now becoming overheated and unsustainable.”

“It will take several more months however to confirm this trend, which is not London led.”

Jim Atkins, a past president of the National Association of Estate Agents and a TEAM member based in Dorset, said: “Whilst we have seen some appreciable increases over the past few months, there are variations throughout the country, which has resulted in a levelling effect more than a standard increase.”

“Sellers need to consider their prices carefully for lenders are starting to be cautious with mortgage valuations. However, the market remains strong with a continued shortage of property to sell.”