Housing market 'recovering'

17 February 2006
House prices have risen for the third month in a row suggesting a housing market recovery, according to new research.

The number of chartered surveyor estate agents confirming a rise in property prices was up nine per cent last month, compared to eight per cent in December.

Buyer enquiries have gone up for the eighth consecutive month, according to the Royal Institution of Chartered Surveyors (Rics).

This is the longest sustained rise since the survey started.

Completed sales are up 15 per cent on last year and this increased activity is fuelling a rise in house prices. However, analysts have warned that the surge will be nothing like the boom conditions between 1997 and 2002.

There have been property value increases across the UK, but most notably in London where City bonuses are boosting market activity, as well as in Scotland and the south of England.

Ian Perry, Rics spokesperson, said: "After months of struggling, the housing market is picking up.

"The current dynamics are favourable to sellers as the amount of property available to buyers remains limited. Reasonably priced properties are selling well."

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