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Tuesday 12th January 2010
House prices rise slowing down
The rate at which house prices are rising slowed during December as the gap between supply and demand narrowed, research has revealed.
The Royal Institution of Chartered Surveyors (RICS) said 30% more surveyors reported price increases during the month than those who saw a fall, down from 35% more in November.
It attributed the slowdown to the traditional seasonal lull seen over the Christmas period, as well as a rise in the number of homes coming on to the market, easing the current mismatch between supply and demand.
More surveyors reported an increase in new instructions than those who reported a fall for the seventh month running, as recent price rises tempted homeowners to put their properties up for sale.
The group said demand from potential buyers was continuing to outstrip the supply of properties, but it added that the gap was narrowing, with a balance of only 20% of surveyors reporting a rise in inquiries from potential purchasers, the lowest level since January last year.
RICS spokesperson Jeremy Leaf said: "New enquiries are continuing to outpace new instructions which is helping to push house prices higher.
"The recent loss of momentum in prices and the moderation in new buyer interest can be in part attributed to the housing market pulling down its shutters for Christmas.
"It is likely that the new year will see more interest and activity in the market as those who held back start to market their property with renewed optimism."
Chartered surveyor estate agents sold an average of 19.1 properties each during the three months to the end of December, the highest level since March 2008.
Going forward, 13% more surveyors expect further price rises during the coming three months than those who think there will be falls, but only 6% more expect sales levels to continue increasing, down from a balance of 20% in November.
Source: Press Association