You are here: Home - Mortgages - Buy To Let - News -

Price rises widespread as demand for homes skyrockets – RICS

Written by:
Property prices are increasing across much of the UK as government schemes fuel soaring demand.

The Royal Institution of Chartered Surveyors’ (RICS) monthly survey has revealed that 57% of its surveyor members reported property price increases this October, the largest percentage since June 2002.

Activity in the housing market is picking up, with the average number of homes sold per chartered surveyor in the three months to October reaching 20.3, the highest number since February 2008.

Enquiries from aspiring new homebuyers outstripped instructions to sell property in every region of the country.

As a result, the pace of increase in demand for rented property is slowing down – only 11% of RICS members reported a rise in enquiries from potential tenants during October, the lowest reading in over ten years.

RICS members said that continuing low interest rates and the government’s Help to Buy schemes were combining to bolster homebuyer demand, with the gap between supply and demand currently wider than it has been at any time since May 2009.

Simon Rubinsohn, RICS’s chief economist, said that lenders were offering more, higher loan-to-value mortgages to borrowers under the Help to Buy 2 scheme, boosting demand.

“In spite of this, the amount of homes currently up for sale is still nowhere near enough to keep up with demand and – in order for the market to function correctly – this imbalance urgently needs to be addressed,” he said.

In September this year, RICS suggested that the Bank of England should put a brake on house price increases, limiting rises to 5% per year.

The latest survey revealed that RICS members expect average UK house prices to increase by 3.5% over the next 12 months, a rate experts describe as ‘steady growth’.


Tag Box

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

ISAs: your back-to-basics guide for 2018/19

Here’s everything you need to know to make the most of your unused ISA allowance ahead of the 5 April deadli...

A guide to Sharia savings accounts

A number of Sharia savings products have upped their game in recent months, beating more familiar competitors ...

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
FTSE 250: should you invest in the mid cap rally?

The FTSE 100 has lagged the FTSE 250's performance, but is the success of the mid cap market set to...