View more on these topics

House prices show strong rise, says RICS

House prices have shown the strongest rise in two years, says the Royal Institution of Chartered Surveyors in its UK housing market survey.

House prices rose as demand strengthened on the back of a healthy economic environment and consumer confidence, with 20% more chartered surveyors reporting a rise than a fall compared to 15% in April.

The recent turbulence in the stock market and speculation over interest rate hikes hasnt dampened demand.

Buyers enquiries have continued to rise for a record breaking 12th month in a row, with 22% more chartered surveyors reporting a rise the highest rise since last October – up from 5% in April.

18% more chartered surveyors reported growth in new instructions to sell as vendors pushed more property onto the market due to rising unemployment, a reaction to new Housing in Multiple Occupation legislation and the possible implementation of Home Information Packs.

The stock of available property on the market has risen for the second time in three months despite a rise in sales in May.

In the month of May there were 72.4 properties on average on the market compared to 71.7 in February.

Scotland and London have shown the sharpest gains while prices elsewhere show moderate increases or remain flat.

House prices in Northern Ireland, which are included in the survey for the first time, have shown a sharp rise as the market benefits from the peace dividend.

Jeremy Leaf, spokesman for RICS, says: The strength of the housing market suggests consumer confidence in the UK economy.

Buyers are trading up the housing ladder and have blown dust from their wallets as interest rates remain stable.

Price rises for family homes continue to outpace flats for a third consecutive month.

However, the upturn in the number of sellers will keep a lid on house price rises going into the second half of 2006.

The cost of HIPS and new HMO legislation may encourage more people to sell before June 2007, while the fear of interest rates hikes and a volatile equities market is likely to have a cooling effect later in the year.


Charcol sourcing

John Charcol has chosen eMoneyfacts as its sourcing system.

Fresh ways to generate business

Forging links with introducers is a good way for brokers to generate business but developing existing client databases is likely to be more cost-efficient, says Richard Coulson

Principia links with charity

Broker Principia Mortgages is partnering with HIV and AIDS charity Crusaid, donating 10% of all business generated from the marketing of the partnership to the charity. The partnership with Principia, which specialises in offering financial advise to gay people, is Crusaid’s first. The aim of the venture is to raise money for Crusaid while promoting […]

Lenders should keep their promises

We brokers have to trust lenders to keep their promises but when they let us down we are the ones who have to break the bad news to valued clients, says Sue Read


News and expert analysis straight to your inbox

Sign up