RICS sees jump in resi prices 

Most of the UK is again seeing an increase in house prices as the result of an uptick in confidence and a shortage of stock coming to the market, according to the RICS. Its November Residential Market Survey states that the number of prospective buyers in the UK housing market has increased for the third consecutive month, though it is still at historic lows, while the slow sales market is expected to continue into the new year. The RICS said demand increased in most parts of the UK in November and led to a rise in agreed sales, but supply shortages had constrained the market. There was also a further decline in the number of homes for sale. Simon Rubinsohn, RICS chief economist, said: “A key issue for the housing market is the slowdown in transaction activity since the spring, which is clearly being reflected in the RICS agreed sales data as well as in official figures. “Although there are some signs that the numbers may begin to edge upwards in the new year, the combination of macro uncertainty, the ongoing supply shortfall, with stock levels around historic lows, and the myriad of tax changes impacting on buyers suggest that any pick-up in activity will be relatively modest.” As stock continues to dwindle, the headline RICS price balance has risen to 30%, which is the highest reading since April, and most of the UK is seeing an increase in prices. The outlook over the year to come is positive in all areas with a net balance of 40% of respondents forecasting house price growth. However, there is less confidence over London prices relative to other areas, with larger properties in the capital expected to show the slowest growth. Comments from respondents suggested that tax changes were still weighing heavily on this part of the market. • To send feedback, e-mail alex.peace@estatesgazette.com or tweet @egalexpeace or @estatesgazette