249: Property market going strong in November

Navigation trail: / latestnews / archive / 249 - published: 19-12-06

Surveyors are reporting strong but level growth in house prices last month, the Royal Institution of Chartered Surveyors' (Rics') housing market survey shows.

From October to November there was only a 0.3 percentage point change in the number of rises reported by surveyors compared to falls, going from 47.7 per cent down to 47.4 per cent.

The figures show the property market absorbing November's interest rate rise of 0.25 percentage points with the "turbo-charged financial services sector" of London and the south-east keeping property prices rising.

"The Bank of England's rate rises have failed to dent the housing market�s armour. Strong employment conditions and a robust economy continue to shield the market from any dip," Rics spokesman Jeremy Leaf commented.

"While concerns remain about high consumer debt levels, households still view their finances as strong. A further interest rate rise in the new year may have a mid-term effect. We expect house prices to rise by seven per cent following a nine per cent jump in 2006.

"This will give no joy to first-time buyers creating a bleak outlook for many across the country. The chancellor will need to help first-time buyers in the forthcoming Budget so as to tackle the overall affordability problem. A significant rise in house building levels would help alleviate this problem."

Rics also reports levels of housing stock remain at their lowest since August 2004, with completed sales hitting a high of 20 per cent compared to the same time last year.

Source:

MyFinances.co.uk