House prices rising at fastest rates in 2 years: RICS survey |
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Thu, 16 Mar 2006 13:55
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LONDON: The three months to February saw house prices climb up at the fastest pace in two years, the Royal Institution of Chartered Surveyors said Thursday. The RICS house prices balances reached +17 in February from +9 in January.
This figure is the highest since June 2004, when the prices were in double digits last. It also marked the fourth straight month of increase.
RICS said surveyors remained most confident in February in the last 22 months that prices are destined to increase further although the chances of an interest rate cut by the Bank of England, which set the growth trend in August, is rather remote now.
House prices in London increased at its highest in nearly three years, RICS said. Demand for properties was so high that some agents are adopting inviting sealed bids from prospective buyers. One such agent in Kensington had 33 bids for one property, all quoting above the asking price of 1 million pounds. The agent said two years ago, there were just two offers for a similar property.
RICS spokesperson James Scott-Lee said London is traditionally the trend setter and agents are hoping that this is the beginning of a wider, firmer housing market growth "as buyers begin to compete more aggressively for the homes they want".
The ratio of completed sales with available property rose to 35 per cent in February from 34 per cent in January, said RICS. This is the highest since October 2004. The balance of power is now almost neutral unlike a year ago when the buyers enjoyed an advantage.
Completed sales remained stable at 24.8 per surveyor, while the number of unsold property fell to 71.9 from 72.4 in January, RICS said. While South East and South West saw moderate price rises, there were small falls in Midlands. The increase in prices rather slowed down in Scotland.
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