Finance News

Lack of Houses For Sale Could Push Prices Higher

Em Morley - April 17, 2015

It is predicted that property prices in the UK could begin to increase again, after a second monthly drop in the amount of houses being put up for sale, according to surveyors and estate agents.

Lack of Houses For Sale Could Push Prices Higher

Lack of Houses For Sale Could Push Prices Higher

Despite the sales and inquiries from prospective buyers figure steadying in March, the Royal Institution of Chartered Surveyors (RICS) says that the amount of its members expecting prise rises in the next year is at the highest level since spring 2014.

This prediction is fuelled by a shortage of homes coming onto the market, it says, as March experienced the second consecutive drop in properties up for sale.

In most of the country, RICS says that the disproportion of supply and demand is forcing prices up. Around the UK, 21% more surveyors saw an increase in property prices in March, up from 15% in February. Additionally, 15% more surveyors predicted price rises in the next three months, compared with 10% in February.1

70% of surveyors expect price increases in the next year with average predictions of 2.5%, which is a ten-month high.1

Simon Rubinsohn, Chief Economist at RICS, says: “The boost that was given to the housing market by the Help to Buy scheme has begin to dissipate and activity levels have slipped back.

“Even more worrying are the tentative signs that price momentum could be set to pick up once again as the supply of stock to the market continues to fall.”

Rubinsohn also mentioned that election uncertainty could be having an affect on the housing market.

However, he concludes: “Underlying the trends visible in the latest survey is a very real housing crisis that will urgently need to be addressed by the next government.”1