Strongest month for house prices since 2010

21% more Chartered Surveyors reported prices rose in June, making this the strongest month for house prices since January 2010, according to the latest RICS Residential Market Survey.

The outlook for future prices is also strong with a net balance of 23 per cent more respondents reporting that prices will rise rather than fall over the coming three months.

This rise in prices has mainly been fuelled by increasing numbers of prospective buyers returning to the market. Last month, a net balance of 38 per cent more chartered surveyors reported a rise in new buyer enquiries.

In a clear sign that market confidence is gradually being restored, and that funding schemes are making a difference, demand from prospective buyers has now risen month on month since January and is currently showing its fastest rate of growth since August 2009.

Reflecting this slightly more positive mood, surveyors also expect home sales to rise over the coming three months, with a net balance of 45 per cent more respondents (from 36 per cent in May) predicting sales will increase. This is the most positive reading in this series’ history, which began in April 1999.

Despite the increasing appetite to purchase property and the added support to do so, the rental market continues to be important in providing housing. Overall demand for rented property actually rose slightly during June, to a net balance of 27 per cent (from 21 per cent).

Post courtesy of Financial Reporter