As sellers begin to return to the property market house prices are likely to continue their steady rise, according to the Royal Institution of Chartered Surveyors (Rics).
Despite a rise in supply, the market is still heavily unbalanced by the number of potential buyers registered with estate agents.
House prices have reportedly risen by 6% between May and September, with the fourth monthly increase in a row now pricing the average house at £199,303.
The Rics survey discovered that, during October, the balance of surveyors reporting prices rises rather than falls rose to 34%, up from 20% in September. The report stated that this was the strongest indication of rising property prices since December 2006.
The survey also reported that London was leading the way in terms of price rises, with 95% of agents in the capital reporting that values were increasing. In addition to this, the balance of surveyors across the UK reporting an increase in instructions has risen from 5% in September to 15% in October. Rics believed that the upward trend in sales instructions occurred in all regions, particularly in the north of England, the South West and in London.
A statement from Rics said: “The most recent survey provided further evidence that activity levels also continue to improve, albeit at a slightly slower pace than in previous months [but] a shortage of supply still seems to be limiting activity in the housing market.”
Source: BBC News
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