RICS UK housing market survey, April 2006
House prices have risen for the sixth consecutive month and larger properties are out-performing flats, according to the Royal Institution of Chartered Surveyors (RICS) UK housing market survey published today.
House prices rose as demand has further stabilised on the back of the strengthening economy. For the three months to April, 15% more Chartered Surveyors reported a rise in house prices than a fall, up from 12% in March. Confidence in the industry remains high and is still above the historical average for the survey. Larger and mid range property types are showing disproportionate price gains compared to under performing flats, the largest variation of performance since 2001. Pre -1960 houses with two or three bedrooms are leading the way with the largest price rises for almost two years.
Buyers' enquiries have continued to rise in April for a record breaking eleventh month in a row, as households feel confident in the economic climate. The recent softening of the labour market has led to a modest rise in the number of property sellers, though relatively low interest rates have helped demand retain a positive impetus. The stock of available property on the market has fallen by 10% compared to levels one year ago, the largest annual drop since August 2004. At the same time, surveyors have reported a 17% rise in sales activity which has squeezed potential buyers for choice.
Scotland and London are still the strongest housing markets, while the northern regions are showing a healthy competitive edge. Price falls are still affecting the Midlands, reflecting a weak manufacturing picture.
RICS spokesman Jeremy Leaf said: "The rise of house prices suggests a return of confidence to the market boosted by a healthy economic climate. Greater economic wealth has boosted prices for larger properties as buyers remain content to invest for the long term, with a rising stock market not detracting interest in real estate. Low interest rates have encouraged households to enquire about the purchase of new property with the market showing few signs of being derailed by the recent spike in petrol prices. But, the drop in available stock is indicative of market tightness with the balance of the market swinging in favour of sellers coming into the strong selling period of May and June."
