Saturday, August 13, 2022
UK

UK house prices to keep climbing over the next year

house prices

The RICS said a balance of 65% of those surveyed recorded price increases in June, down from a high of 78% in April

UK property surveyors expect house prices to keep growing over the next year despite a drop in new buyers because of a continuing lack of supply of homes to buy or rent.

The Royal Institution of Chartered Surveyors (RICS), whose members appraise properties up for sale, said a balance of 65% of those surveyed recorded price increases in June, down from a high of 78% in April. Over the next year, 37% see continued growth.

The survey revealed that average sales prices for properties listed at up to £500,000 were more likely to be above the asking price.

In properties priced between £500,000 and £1m, 39% of surveyors are seeing the sales price beat the asking price. Properties listed at over £1m are typically selling just below the asking price.

Britain’s property prices kept growing thorough the pandemic and recession as buyer demand outstripped the number of houses on sale. That’s also kept rental costs rising at a time when the incomes of consumers are being squeezed at the sharpest pace in decades.

However, the market is showing signs of cooling off as property professionals saw fewer new inquiries from house hunters in June.

Although buyer inquiries have predictably slipped a little of late, this needs to be placed in the context of the healthy level of demand, Simon Rubinsohn, chief economist of RICS, said in a statement Thursday. A probably even more striking aspect of the latest report is the concern being voiced about the rental market.

Still, the report also flashed some warning signs for the housing market. New buyer interest fell for a third successive month and, some agents warned that sales were struggling as inflation hurt demand.

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