11
Aug
House shortage 'props up prices'
A shortage of homes for sale in the UK propped up property
prices in July, according to the Royal Institution of Chartered
Surveyors (Rics).
The survey said 8% more surveyors reported seeing price falls
than those who said the cost of homes increased.
This was the lowest figure for two years, in a further sign of
improved market sentiment.
However, Rics has warned recently that there is little chance of
a quick return to a housing boom.
Mortgage misery
Looking ahead, the latest Rics survey found that 8% more
surveyors expected prices to rise rather than fall further over the
next three months. Meanwhile 29% more predicted sales levels would
increase.
Rics said that the optimism was being partly driven by a rise in
interest from potential buyers, as new enquiries about homes rose
for the ninth month in a row - though it cautioned that the rate at
which they rose was slightly lower than in June.
"Although demand for property is continuing to rebound, it still
remains low from a historical perspective," said Rics' spokesman
Jeremy Leaf.
"Crucially it is the lack of supply that is helping to underpin
prices at the present time.
"Significantly, the more positive news on prices - at least in
some parts of the country - may prompt more properties to come on
to the market."
House prices have fallen sharply as the financial crisis has
made it harder for would-be buyers to obtain mortgages.
And Mr Leaf warned that if mortgage availability remained
insufficient to meet the increase in buyer demand, then it was
possible "that prices may slip back again especially if
unemployment continues to rise and mortgage rates increase".
source: www.bbc.co.uk/news Tuesday 11th
August 2009