RICS and NAEA Report Increases in House Prices and Sales

Survey performed by the Royal Institution of Chartered Surveyors (RICS) found out that the number of its surveyors reporting increases in house prices in the 3 months prior to September exceeded the number of those reporting falls in house prices for the 1st time in the past 2 years. The results, however, were mainly determined by the changes in the pricing environment in London and South East England. Also, according to RICS, the increasing house prices must have become a result of low supply and rising demand rather than of market recovery. Mr. Jeremy Leaf, a spokesperson for RICS, claimed that although rising house prices look promising, the organisation is determined that the increases in house prices are caused by shortage of property supply in most parts of Great Britain. He added, however, that according to RICS data, more sellers are considering putting their properties on sale and, if they do so, increases in house prices will be challenged. More good news came from the National Association of Estate Agents (NAEA), which reported a significant number of first-time buyers and home moves returning to the British property market. Mr. Gary Smith, president of the National Association of Estate Agents, said that young couples and large families tried to take advantage of the house prices in the summer months in order to improve their living conditions. His words also found proof in another survey conducted by RICS, which suggested that the number of new buyer’ enquiries rose. Interestingly, the report of Mr. Edward Waterson, a RICS’ North Yorkshire surveyor, contradicted the data of NAEA as it suggested that the most active group of buyers on the UK property market was the “over 50’s”. Nevertheless, the real-world situation on the British housing market can be seen in the actual sales, which, according to estate agents, increased. According to agents’ reports, they sold an average of 17 properties each in the 3 months to September.