RICS says house prices up for third month in a row |
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Published
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Thu, 16 Feb 2006 11:55
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LONDON: House prices in the U.K. increased for the third consecutive month in January, though at a very modest rate, according to the Royal Institution of Chartered Surveyors Thursday.
RICS said its house prices balance rose to +9 in January from +8 in December. However, the increase is only around half the long-run average pace.
The market is enthusiastic and there has been a fall in available property stocks to a 15-month low, which is evidence enough of an increase in demand after a year of uncertainty.
RICS spokesperson Ian Perry said the housing market appeared to be picking up after months of struggle. He said reasonably priced properties are selling well. While December and January are quiet months for the market, the spring offers a lot of promise, he added.
RICS said buyer enquiries rose for the eighth consecutive month in January while the ratio of completed sales compared to the stock of available property too rose for the ninth straight month. Overall stocks of property on chartered surveyor estate agents' books fell by 2 per cent over the last three months and are at a 15 month low, despite an increase of new property placed on the market by sellers.
Price rises are being reported across the country, with the exception of the Midlands, and are strongest in London and Scotland, the agency said. The London market continues to be supported by big City bonuses, with premium level buyers active in Southern England.
Much of this improvement is on account of an increased consumer confidence and lower mortgage interest rates, RICS said.
Meanwhile, in the Bank of England's quarterly inflation report, governor Mervyn King cited housing market as one of the factors that are likely to support domestic demand over the coming months.
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Rents rising faster than house prices: Rics 