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16 June 2006
A rise in demand for housing has given house prices their strongest boost for two years, data from the Royal Institution of Chartered Surveyors (Rics) has shown.
Around 20 per cent more chartered surveyors reported an overall rise rather than a fall in house prices in May, compared to only 15 per cent in April, on the back of increased consumer confidence and a healthy economy.
Rumours of interest rate rises and a turbulent stock market did not affect housing market buoyancy, with buyers' enquiries rising for the twelfth month in a row.
However, the stock of available property on the market has also grown, with 18 per cent more chartered surveyors reporting a rise in new instructions to sell, in part due to new Housing in Multiple Occupation legislation (HMO) and the upcoming introduction of Home Information Packs (Hips).
"The upturn in the number of sellers will keep a lid on house price rises going into the second half of 2006," said Rics spokesman Jeremy Leaf.
"The cost of Hips and new HMO legislation may encourage more people to sell before June 2007, while the fear of interest rates hikes and a volatile equities market is likely to have a cooling effect later in the year."
If a rise in house prices affects you and your current credit commitments, check your credit report and make sure it's up to date.
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