RICS reports ripple of positivity in property

13 October 2006
The UK housing market has seen a price increase for the 11th consecutive month in September, according to a RICS survey, and buyer enquiries are experiencing their strongest-ever run.

A combination of would-be buyers returning to markets and a limited availability of property at the present time has caused a swell of prices across the country, as reported by RICS estate agents.

Led by the traditionally strong property regions, like London and the south-east, the recent booms in the City and on the stock market have given investors renewed confidence in the property market.

Buyer enquiries went up for the 16th consecutive month, a record of consecutive rises. Coupled with the fact that new instructions to sell fell for the fourth month in a row, property is proving a sound investment at present.

"Greater economic activity has created a ripple effect in house prices across the country," said RICS spokesman Jeremy Leaf.

Mr Leaf tempered this positive news for market investors by saying that price rises would "make it difficult for the Bank of England to leave the base interest rate level at 4.75 per cent", so many mortgage-holders could see their outgoings increase in the near future.

To read more about investment property, click here.

track© Adfero Ltd