RICS: House prices surge in the south
Tuesday, 18 Jul 2006 11:03
House prices rose strongly in London and the south-east
House prices in London rose faster than they have done for six-and-a-half years during June, new figures show.
The market in the south-east was similarly buoyant, with prices rising faster than they have done for four years.
The World Cup along with continued rises in unemployment and volatility in financial markets have not dampened the housing market, with 28 per cent more chartered surveyors reporting a rise in house prices than a fall.
The equivalent figure for May in the survey by the Royal Institution of Chartered Surveyors (RICS) was 21 per cent.
Buyer activity continued to increase, with enquiries and newly agreed sales up for the second consecutive month. Completed sales have increased by 17.9 per cent over the last 12 months.
"A strong economic climate continues to encourage the housing market with rising unemployment doing little to discourage the consumer," said RICS spokesman Ian Perry.
"Contrary to expectations, the World CUP and volatile financial markets have had little impact, a sign that the market remains healthy and consumer confidence is strong."
The mini-boom in London is stretching the gap between growth in the capital and the rest of the country, and it is now the highest ever recorded. The situation is a reverse of that since 2002 when London lagged behind the rest of the country.
"Evidence suggests that the property market is once again seeing a north-south divide," said Mr Perry.
"A strong financial services sector has transformed London into a property rich 'city state'. Economic divisions used to be characterised by unemployment and economic decline but are now characterised by the difference in house prices. London has become a property kingdom created by finance."
XXX