House prices on the rise again
EVIDENCE that the UK housing market is finally recovering from its post-recession inertia has appeared through figures announced by The Royal Institution of Chartered Surveyors (RICS).
The report claims that the raft of measures announced by the Government in the most recent Budget has had an immediate impact. The Funding for Lending Scheme (FLS) and the Help to Buy initiative has helped raise new buyer inquiries to their highest level since November 2009, following a 13 per cent rise from March, according to the Rics' Residential Market Survey. The poll reveals that 25 per cent more chartered surveyors reported rising rather than falling demand for property in April as an improving picture of the residential property market emerged.
Last month there was also an increase in new instructions to sell, however, the increased supply of residential property coming to market did not keep pace with the rising demand – resulting in upward movement in house prices.
The report noted the first positive reading for house prices since June 2010. Residential property sales are also said to have risen last month, with 19 per cent more surveyors reporting an increase in sales rather than a fall during April, compared to 11 per cent in March.
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Andrew Grice from Strutt & Parker's Salisbury office said: "A more vibrant residential property market and better access to mortgages is having a positive effect on prices, which is good news for those wishing to sell. With the market healing and various other post recessionary factors including increased confidence, and a resurgent appetite to purchase, the tension between supply and demand is set to increase further."
Demand for rental properties continues to outstrip supply and, as a result, 18 per cent more surveyors expect rental prices to rise rather than fall. However the rental price rises expected by surveyors - under two per cent over the next year - are relatively small.
Andrew adds: "Those who delayed moving home will add to the numbers of new buyers in the market and this will inevitably provide further upward pressure on prices."