Thursday 12 March 2020 12:01 am

London house prices: Rising demand pushes up property prices

London house prices increased in February due to rising demand for homes in the capital, according to new research.

In total 39 per cent of London contributors to a survey by the Royal Institution of Chartered Surveyors reported a rise in house prices last month, the highest amount since May 2014. 

Read more: London house prices: Did your borough benefit from the Boris bounce?

Additionally, 27 per cent expected prices to continue to rise over the next few months. 

There was also a rise in new buyer enquiries during February for the third month in a row, however property professionals raised concerns that coronavirus could impact viewings during the traditional spring house selling season. 

Rics chief economist Simon Rubinsohn said: “It is encouraging that the results of the latest survey continue to show a positive trend both in terms of potential buyer interest and new instructions to agents.

“Indeed this is the first time since 2014 that new supply to the market on the Rics indicator has increased for three consecutive months.

Read more: London house prices rebound with 2.3 per cent growth after election

“Inventory levels are still at historically low levels despite this but the firmer trend in appraisals suggests that the picture could improve over the coming months providing the coronavirus doesn’t become more of an inhibitor of activity in the sector.

“For now at least, feedback around expectations are consistent with activity levels continuing to strengthen albeit relatively modestly.”

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