House price growth eases say Rics

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by Kay Murchie

The Royal Institution of Chartered Surveyors (Rics) has today reported that house price growth slowed in December with almost one third of surveyors reporting price gains than falls during the month.

However, the positive balance was lower than in the previous two months.

Rics did point out that a shortage of properties on the market is continuing to drive up house prices and it is predicting further gains in the early part of this year but this will be followed by modest falls in the latter half of the year, resulting in a small overall rise of 1%-2%.

Many other experts are predicting house prices will be flat over the course of the next 12 months as a result of the current economic uncertainty.

Meanwhile, commenting on its figures, Rics spokesman Jeremy Leaf said: “The recent loss of momentum in prices and the moderation in new buyer interest can be in part attributed to the housing market pulling down its shutters for Christmas.

“It is likely that the new year will see more interest and activity in the market as those who held back start to market their property with renewed optimism,” added Mr Leaf.

Many analysts were surprised by the strength in house prices last year. Rics said house prices rose for the seventh consecutive month in December.

This corresponded with many other house price indices with the Halifax reporting that prices were 1.1% higher in December compared with a year ago - the first annual rise since March 2008.

Meanwhile, Rics said seven out of 12 regions showed price increases in the past three months, while the remainder experienced falls. The biggest gains were experienced in London and the southeast of England.