RICS price index positive for first time in two years

Reports over the past months have suggested prices have been pushed up by a lack of homes coming onto the market. But RICS figures show the house price net balance for properties in England and Wales went up for the first time in two years last month, despite an increase in the availability of homes.

The percentage of chartered surveyors reporting rises rather than falls in house prices reached a positive reading of 10.7, which was up from a negative reading of 5.7 per cent in July. This was the highest result since May 2007, when the net balance was 24.8 per cent.

And the balance of surveyors reporting an increase of new instructions coming onto the market rose from 4 per cent in July to 12 per cent in August. However, the average number of unsold properties on surveyors’ books did rise from 61 properties to 63.

The RICS housing market survey, published today, says: ‘While activity in the housing market continues to improve, the pace of improvement did slow slightly last month.

‘The net balance of surveyors reporting an increase rather than a decrease in new buyer enquiries edged down, from 61 per cent in July, to 49 per cent in August.’

But it adds: ‘Looking forward, the strengthening in activity and sentiment has boosted surveyor optimism.’

Prices rose fastest in London, the south east and south west last month and also went up in the north west and East Anglia. The balance of surveyors reporting price rises rather than falls for London and the south east reached 43 per cent and 39 per cent respectively.

But sales activity was highest in the east and west midlands, with sales per surveyor being 22 and 19 respectively.

It is expected sales in the north west, followed by the south east, Wales and the north will be strongest over the next three months.

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