RICS: Large properties lead house price rises

House prices have risen for the sixth consecutive month, led by strong price rises for larger properties.

Both large and mid-range properties are enjoying disproportionately large price gains compared with flats, which are underperforming, according to a survey by Royal Institution of Chartered Surveyors (RICS).

The largest prices rises are for pre-1960 houses with two or three bedrooms, which are seeing the largest prices rises for nearly two years.

Overall, 15 per cent more chartered surveyors reported a rise in house prices than a fall in the three months to April, up from 12 per cent in March.

Confidence in the housing market is highlighted by another rise in buyers' enquiries in April, a record breaking eleventh in a row.

Meanwhile, stocks of property for sale are continuing to fall, and are now ten per cent down on a year ago.

"The rise of house prices suggests a return of confidence to the market boosted by a healthy economic climate," said RICS spokesman Jeremy Leaf.

"Greater economic wealth has boosted prices for larger properties as buyers remain content to invest for the long term, with rising stock market no detracting interest in real estate."

The market remains strongest in London and Scotland, while the northern regions of England are still performing well, RICS reports.

Strong performance north of the border is illustrated by a separate survey, showing house prices in Scotland have risen by four per cent in the three months to the end of April.

According to the Lloyds TSB Scotland's house price monitor, the average house price in Scotland is now £133,968, having risen for 21 consecutive quarters.

Dundee has seen the largest annual rise of 30 per cent, although this is largely due to rises in the middle of last year than the most recent quarter when prices rose by just 1.5 per cent.

Aberdeen had the highest growth in Scotland in the last three months, where average prices rose 9.4 per cent between February and April.

Outside the main cities, central, Fife, Perth and Tayside saw the highest quarterly rises of 5.8 per cent.

Lloyds TSB Scotland's chief economist Donald MacRae said: "The Scottish house price boom may have subsided, but robust price growth continues." XXX