London leading property resurgence

17 March 2006
London is leading a pick up in the pace of the UK property market, according to a new survey.

The Royal Institute of Chartered Surveyors (Rics) saw 17 per cent more of its members report price rises than falls last month, the largest positive figure it has recorded in over 18 months.

The best news was reserved for London, however, where 49 per cent more estate agents said their property prices rose.

Rics spokesman, James Scott-Lee, said: "Traditionally, where London goes the rest of the market follows."

Another good sign for the market is that there was an increase in the number of enquiries at estate agents in February.

Rics concluded that any disappointment at the absence of a cut in interest rates was offset by a four per cent decline in properties available for purchase. Family houses with two and three bedrooms were in particular demand.

The tighter supply was spurring more buyers to push through sales, it said.

Last month the Office of the Deputy Prime Minister reported that house prices were up by 4.3 per cent year-on-year in January.

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