Have you noticed the ‘demand up – supply down’ trend?
It seems that the UK residential market witnessed healthy demand this April, when the average number of homes per surveyor reached 23 – the highest amount seen since February 2008. April, however, emerged as the fourth consecutive month to score a decline in new homes for sale coming to the market, the Royal Institute of Chartered Surveyors (RICS) said.
As a whole, the ongoing demand-supply mismatch continued to drive developments in the housing market, pushing prices higher, RICS’ latest Residential Market Survey shows. Despite this persisting imbalance and the lack of new property, however, 26% more surveyors ended the month with higher sales.
April’s figures suggested that the house price recovery was broadening out of London and spreading across regions, with East Anglia and the South East recording the strongest improvements in values over the past three months.
Nearly half (48%) of surveyors across the country now predict a further rise in home values in the next three months, and almost three-quarters of them expect prices to go up in the next 12 months. Over the coming five years, home values will likely see an average growth rate of 6%, according to the survey responses.
In East Anglia, 57% more surveyors now believe that prices will keep increasing in the next three months. In London, there were 49% more surveyors expecting growth in residential property costs, down from 61% in March.
House prices will likely remain on upward trajectory going forward, Simon Rubinsohn, chief economist at RICS, commented. There are, however, indications that growth in London property values might lose steam in the second half of the year, he said.