Further house price rises predicted
A lack of available housing is continuing to drive prices upwards, according to the latest data.
The Royal Institution of Chartered Surveyors’ monthly UK housing market survey has found the balance of surveyors reporting a rise rather than a fall in prices has reached its highest level since May 2007.
The positive reading of 22 per cent is up from 10 per cent in August. The increases are being driven by London and the south east, where the balance of surveyors reporting rises was 79 per cent and 52 per cent respectively.
RICS spokesperson Ian Perry said: ‘The imbalance between demand and supply suggests that house prices will move higher in the near term.’
Data from the Communities and Local Government department, also released today, shows a similar picture, with prices rising 0.5 per cent between July and August across the UK.
Yesterday the Council of Mortgage Lenders published figures showing the number of loans for house buying fell 5 per cent between July and August. However the figures are up 29 per cent on August 2008.
CML economist Paul Samter said: ‘House purchase activity has revived from its moribund state at the beginning of the year. It will be a drawn out recovery process with seasonal ups and downs, but house purchase activity is now on a firmer footing.’
Have your say
You must sign in to make a comment