Surveyors report continued rise in house prices
House prices across the UK have risen for the fourth straight month according to the Royal Institution of Chartered Surveyors (RICS). The net balance of surveyors reporting rising rather than falling house prices over the preceding three months rose to 35% in November – the strongest reading since November 2006.
The rise in prices was fuelled by a continued excess of demand from buyers over supply of properties to the market. Although new instructions from sellers rose for the sixth consecutive month, the rate of increase continued to trail behind the increase in new enquiries from buyers. Expectations for future price growth also remained positive. A net balance of 28% of surveyors expected prices to rise rather than fall over the next three months.
David Marshall, business analyst with ESPC, commented: "The results of the most recent survey from RICS are in line with recent trends. Although activity is picking up across the board there continues to be an excess of demand over supply and this has resulted in house prices inching upwards in recent months. As we move into the new year we are likely to see a further increase in activity while prices remain broadly unchanged on recent levels."