RICS: House prices will continue to rise

| November 10, 2009 | 0 Comments

In its latest survey of the housing market, the Royal Institution of Chartered Surveyors (RICS) concludes that UK house prices will continue to rise in the near term.

The balance of surveyors reporting rises rather than falls in house prices stood at a positive 34% in October 2009, up from 20% a month earlier and with the ratio at its strongest since December 2006.

London-based RICS members were even more positive, with the proportion reporting rises rather than falls at its highest level since December 1996, at +95%.

Meanwhile, a net positive balance of 15 surveyors reported that new instructions had increased in October, up from +5% in September.

The trend was evident across all regions of the UK but particularly in London, the North of England and the South West.

Surveyors also reported that they had completed an average 19 sales over the three months to the end of October, representing a slight rise on the previous quarter.

RICS spokesman, Jeremy Leaf, comments: “Although the supply of property is beginning to pick up, it is still insufficient to keep pace with the increase in demand, which points to further price gains in the near term.”

He adds “Cheap money remains a critical prop for the market and this is being reflected in the continuing appetite for finance from first-time buyers despite the large deposits still being demanded by lenders.”

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