Market still bouyant: RICS

[Property Admin]

The BBC reports that the Royal Institution of Chartered Surveyors (RICS), claims the UK property market is still bouyant, as the traditional New Year sales come through at Easter:
http://news.bbc.co.uk/1/hi/business/4918170.stm

Prices in England, Wales and Scotland rose in March for the fifth month in a row, RICS said.

Among its members, 13% more of them saw prices rise than saw them fall as the industry showed "a lot of optimism".

The number of potential buyers on the books of RICS members has also gone up for the tenth month in a row.

RICS spokesman Ian Perry, said: "People traditionally put houses on the market in the new year and sales pick up around Easter.

"Agents are clearly expecting this year to be no exception and our figures are showing a lot of optimism in the industry."

The RICS survey found that prices were rising fastest in London, the south-west of England and in Scotland.

It may be a traditional buying time, but I think RICS are putting a brave face on the situation.

The general impression from speaking to people in the industry is that we'll still see life in the markets at the start of year, but that we'll see this very much disappear as the year continues on.

Market expectations are that it'll go stagnant over late 2006 to early 2007, and possibly worse after, depending upon the state of the economy.

[brian]

RICS may actually be right - I'm beginning to resign myself to the possibility of the housing market simply coming to a soft landing.

Unless inflation really starts to bite - which it isn't, despite rising energy costs - then I can't see the housing market being adversely affected.

[Jayne]

Hi,

The house prices are still rising in some W.Yorkshire areas. I do thing they will be levelling out soon, first time buyers cannot afford any more, so I think the demand for cheaper housing will slow the market all together. That's just what I think though.

Jayne

[brian]

What troubles me is the London market being bouyant - on the one hand, London is a separate entity from the rest of the UK housing markets - but it's been said for some time that whatever happens in the London market ripples out.

We've already seen the London market go flat and deflate slightly, but now it's seeing upward investment, and if that does ripple out, I'd expect to see more movement hit the housing markets - regardless as to whether the First-Time buyers are having problems.