Surveyors predict house price rises
Surveyors are the most optimistic they have been for 18 months
Tuesday, 18, Oct 2005 02:24
Surveyors are predicting house prices will rise for the first time in 18 months, providing further evidence of stability returning to the housing market.
Increasing demand for property and the possibility of further interest rate cuts has led to a turnaround in confidence that has prompted surveyors to predict a marginal rise in house prices by the end of the year.
In its monthly survey the Royal Institution of Chartered Surveyors (Rics), reveals that the number of chartered surveyors reporting falls in house prices dropped to 21 per cent in September from 25 per cent in August, and 36 per cent in July.
New buyer enquiries were also up for the fourth consecutive month in September, helped by August's interest rate cut.
Despite this, the high level of unsold property means that it is still a buyers' market where they have room to negotiate on prices.
"While sellers asking for unrealistic prices are still struggling to find potential buyers, they are beginning to feel more confident as fears of a sharp fall in house prices have largely dissipated," said Rics housing spokesman Ian Perry.
He added: "The upturn in demand and improved outlook on interest rates has led surveyors to predict house price rises for the first time since early 2004, though these are expected to be small. Rics expects the recovery in activity to be sustained due to continued expansion in employment, which bodes well for a stable housing market."
The survey also shows that London's house prices have stabilised following a period of decline that started in mid 2004.
Price falls slowed in East Anglia and the north, increased slightly in the south-east and Wales, and returned to the north-west after a period of stability.
Scotland's house prices are continuing to rise, the survey reports.
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