RICS: House prices rise across the UK

House prices are rising in all regions of the UK for the first time in more than two years, according to new figures.

London and the south-east, backed by a strong financial services sector, are leading the way, according to figures from the Royal Institution of Chartered Surveyors (RICS).

The north-west, Scotland and the south-west also enjoyed healthy gains in prices, but despite the overall positive outlook price rises were muted in the rest of the country.

In July, 31 per cent more chartered surveyors reported a rise in house prices than a fall, compared to 28 per cent in June.

The interest rate rise earlier this month has failed to shake the optimism of surveyors, who believe market confidence will remain high for the next three months at least.

"The increase in interest rates will do little to dampen the market as a strong economic outlook and improving employment prospects will hold up the confidence of households," said RICS spokesman Jeremy Leaf.

"Further interest rate rises are to be expected later this year and will slow activity in early 2007 from current buoyant trading levels."

Currently a shortage of supply is boosting house prices.

The number of properties being put up for sale fell for the second consecutive month in July, while unsold property stocks reached their lowest levels since September 2004.

RICS believes the fall in properties for sale is due to the government's decision to abandon its big bang approach to home information packs, and instead introduce elements of the packs in stages from June 2007.

"The government's U-turn on HIPs has released the pressure on prospective sellers to place their properties on the market. With no pressure on prices, the market will see continued growth in the coming months," Mr Leaf added. XXX