RICS November 2013 UK Residential Market Survey
Expectations for future house price growth remained high in London during November as the amount of homes coming onto the market fell short of rising buyer demand.
79 percent more chartered surveyors in the capital predict prices to continue their upward trend rather than fall back over the coming three months. This demonstrates the impact that the recovery in demand allied with anaemic supply is having on the housing market.
Prices remained high in the capital last month as a net balance of 99 percent more respondents reported price growth. Significantly, each region of the United Kingdom saw prices rise for the second successive month. While there are still some areas of the UK that are struggling, it appears that, on the whole, the regional markets are now responding to the incentives provided by the government and better economic news.
Supply bounced back in the capital slightly this month as the increase in buyers encouraged vendors to test the market again with 9 percent of surveyors reported a rise rather than fall in new instructions, compared with 10 percent of respondents reporting a fall rather than rise last month. However, this still falls well short of the level of new buyer enquiries
Although a lack of stock on the market remains a big challenge, the number of property transactions remains steady. During the three months to November, the average number of homes sold per chartered surveyor* in London was 15.
Looking ahead at the UK as a whole, with the economic recovery gaining some traction, predictions for the rate of increase in future transaction levels hit a record level.** A net balance of 76 percent of surveyors across the country expect sales levels to increase as we head into the New Year.
Jon Pishiri, RICS London residential spokesperson commented:
“Increasing demand and continuing low supply are major determinants in London prices remaining high. Although supply has bounced back slightly this month, the Government
