15
Dec
Prices rise due to lack of supply
House prices are still being driven up by a relative shortage of
properties for sale, says the Royal Institution of Chartered
Surveyors (Rics).
Its latest monthly survey, for November, suggests that prices have
risen for the fourth month in a row.
The number of surveyors reporting price rises outstripped those
reporting falls, with a positive balance of 35%.
Separate government figures showed that UK house prices rose by
2.3% in the three months to October.
Supply shortage
Rics carries out its assessment of the state of the market by
asking its members a series of questions about prices, supply and
demand.
It said the latest figures were the strongest reading since
November 2006 and said the trend was likely to continue.
"For the fourth month in a row, the survey points towards prices
rising, even though the general state of the economy would suggest
that the housing market should not be faring as well as it is,"
said Rics spokesman Ian Perry.
"Despite modest increases in the number of properties coming on to
the market, it is clear that this is not significant enough to keep
pace with the levels of demand.
"Buyer enquiries are continuing to grow and with the pace of job
losses now easing, the risk is that the new year could see a
further wave of interest in the market," he added.
New instructions to sell have risen for six consecutive months, but
they have been outstripped by extra enquiries from potential new
buyers.