UK house prices rise for fourth month

Published 16th Dec 2009

Latest survey shows prices rose again in November despite flood of new properties on to the market


House prices in the UK rose for the fourth month in a row in November, despite a flood of new properties coming on to the market, according to a survey out today.

In its monthly snapshot of Britain's housing market, the Royal Institution of Chartered Surveyors (Rics) said the number of surveyors reporting an increase in house prices rose to its highest level since November 2006. It also said the number of houses for sale rose for the sixth month in a row, but added that demand was still outstripping supply.

Ian Perry, a spokesman for Rics, said: "For the fourth month in a row, the survey points towards prices rising, even though the general state of the economy would suggest that the housing market should not be faring as well as it is.

"Despite modest increases in the number of properties coming on to the market, this is not significant enough to keep pace with the levels of demand. Buyer inquiries are continuing to grow and, with the pace of job losses now easing, the risk is that the new year could see a further wave of interest in the market."

London and the south-east witnessed the most marked price rises in the UK since the depressed conditions of a year ago. Buyer inquiries were also strong in these areas despite a low number of properties on sale.

Prices were unchanged in the north and recorded only modest gains in the West Midlands. Scotland continued to see prices edge up due to a lack of supply.

Halifax and Nationwide have both said house prices have risen in recent months. Halifax said last week that prices rose 1.4% in November and have risen by 8.5% since the low in April. Nationwide said the average house price rose by more than £700 last month and that they would end the year significantly higher than at the start.

However, many experts believe house prices are being propped up by the lack of supply and will fall as more properties come on to the market in the new year.

Seema Shah, at Capital Economics, said: "The upturn is generally driven by the lack of property for sale ... Once that starts to correct itself, you're going back to find a market which is still weak."

Source: ' Guardian '

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