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Property demand pushes house prices up, Rics says
13/10/09
Builders who have been concerned about poorly performing property prices could be encouraged by the latest report from the Royal Institution of Chartered Surveyors (Rics), which shows the market has improved.According to Rics, the value of property is recovering because of a lack of supply and its house price balance has recorded the highest figure since the credit crunch began.
Indeed, many builders may have had to scale back their operations in order to align with the decreased demand for properties, especially from first-time buyers who were restricted in what mortgages they could obtain from nervous lenders.
The net balance of chartered surveyors who experienced rises, rather than property price plummets, increased to 22 per cent last month, up from ten per cent in August, the Rics report reveals.
Property professionals and builders in London are enjoying better property values then those in Wales and Humberside, however, which have negative net balances.
"This imbalance between demand and supply suggests that house prices will move higher in the near term," comments Rics spokesman Ian Perry.
The Council of Mortgage Lenders recently reported that while home loan approvals increase, remortgaging has decreased.
