Surveyors positive on UK house price rises
In its August 2009 survey, the Royal Institution of Chartered Surveyors (RICS) reports that for the first time in over two years, a net balance of chartered surveyors saw rises, rather than falls, in house prices.
The net proportion of RICS members reporting price rises actually stood at 10.7%, the highest result since May 2007 when there was a net balance of 24.8%.
The body points out that the national average was boosted by data from the South of England.
The region saw the net balance of surveyors reporting price rises, rather than falls, increase to 39% for the South East and 43% for London.
The month of August also provided further signs that vendors are being encouraged back into the market place.
A net balance of 12% of surveyors reported that new instructions had increased, compared to a reading of 4% in July.
The improvement pushed the average number of unsold properties on surveyors’ books up to 63, from 61 in July.
However, the net balance of surveyors reporting an increase rather than a decrease in new buyer enquiries edged down, from 61% in July, to 49% in August.
Finally, the net balance of surveyors expecting prices to rise rather than fall over the next three months increased to 17%, from 7% in July.
RICS spokesperson, Jeremy Leaf, believes more positive news will gradually encourage vendors to start putting property back on the market.
However, he warns: “This development should enable more potential purchasers to find desirable properties to buy but it could also present a challenge to the firmer trend in prices particularly when interest rates finally begin to move upwards.”
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