House prices continue to rise say Rics

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by Kay Murchie

The Royal Institution of Chartered Surveyors (Rics) has reported that more than a third of its members reported a price increase during November than those who reported a fall - the highest level in three years.

Rics added that the trend is likely to continue despite an increase in the number of homes being put on the market.

Commenting on its research, the Institution said: “For the fourth month in a row, the survey points towards prices rising, even though the general state of the economy would suggest that the housing market should not be faring as well as it is.”

“Buyer enquiries are continuing to grow and with the pace of job losses now easing, the risk is that the new year could see a further wave of interest in the market,” said Rics spokesman Ian Perry.

According to Rics, demand is continuing to outstrip supply, with a balance of 28% of surveyors reporting an increase in enquiries from potential buyers.

Meanwhile, Rics notes that the housing market remains strongest in London and the South East. However, prices are unchanged in the North and the West Midlands.

Last week, the Halifax reported a 1.4% rise in house prices for the month of November compared with the previous month - the fifth consecutive month that house prices have risen.

According to the lender, prices are 4.2% higher than they were in January 2009 but still 1.6% lower than this time last year.

However, many housing experts are cautious about the future direction of house prices. Howard Archer of IHS Global Insight said he “remains sceptical that the house price rally seen since early-2009 can be sustained for much longer.”