Market heating up as property demand rises

THE HOUSING market is showing more signs of bouncing back, as the Royal Institution of Chartered Surveyors (RICS) suggested yesterday that June was the strongest month for house prices in over three years.

Of the surveyors questioned by RICS, 21 per cent more reported rising rather than falling prices, the highest proportion since January 2010. The number of people involved in the industry who expect prices to keep rising over the next year is at its highest point since they survey began in 1999.

Prices are being driven up particularly by rising demand, with 38 per cent more surveyors reporting new buyer enquiries than reporting fewer. Demand has risen in every month this year so far, and is rising at its fastest rate in four years.

Peter Bolton King, RICS’ global residential director, drew attention to the lack of newly built houses and policies which may be heating up the market for property.

He commented: “The various initiatives designed to encourage the provision of finance into the market do appear to be paying dividends”. On the supply of property, he added: “it is absolutely critical that the government continues to focus on its role in supporting the delivery of more new homes into the market”.