Expectations for future house price growth hit a 14-year high during November and there should be more good news for the property market next year.
Latest monthly figures from the RICS showed that 59% more chartered surveyors across the country predict prices to rise rather than fall over the next three months.
This is the highest reading since September 1999 and reflects the impact of the recovery in demand and shortage of supply on the housing market.
House price predictions also increased rapidly, with a net balance of 76% of surveyors expecting sales levels to increase in the New Year.
A net balance of 58% surveyors reported house price growth in November, up from 57% in October.
Significantly, every UK region saw prices rise for the second successive month, suggesting that regional markets are responding to government incentives and better economic news.
Despite the lack of stock on the market, the number of property transactions is continuing to rise.
The average number of homes sold per chartered surveyor hit 20.6 in the three months to November, up from just 15.9 in the same period last year.
Simon Rubinsohn, RICS chief economist, said: “It’s no secret that the housing market is on the way up and prices are surging ahead in many parts of the country.
"The Bank of England’s recent decision to withdraw the Funding for Lending Scheme could well have some impact on the number of people able to purchase a home. Although the improvement in wholesale and retail funding markets may mean the impact on mortgages is relatively limited.
“One thing we are very concerned about, however, is the lack of both new and existing homes coming onto the market. As the Chancellor pointed out last week, housebuilding is on the up, but it is rising nowhere near quickly enough to make up the shortfall that has built up in recent years.
"If there is not meaningful increase in new homes, the likelihood is that prices, and for that matter rents, will continue to push upwards, making the cost of shelter ever more unaffordable.”
Comments