House prices in London are rising at a higher rate than the rest of the country but price rises are now being seen in most regions, according to a range of new surveys.
The Royal Institute of Chartered Surveyors (RICS) showed its price balance to be at its highest level since mid-2012. Expectations of price rises on a three-month horizon were positive in all regions except the north of England and were positive for all regions on a 12-month horizon.
RICS warned that rising demand is not being matched by increased supply and this is pushing up prices.
RICS said: “The pace of demand exceeded that of supply in every part of the country, pushing up prices. At the national level, the gap between demand and supply is now at its greatest since May 2009.”
According to the Council of Mortgage Lenders, mortgage lending went up by 20.5 per cent year-on-year to September and mortgage advances went up by 170,700 in the third quarter, the highest quarterly increase since the fourth quarter of 2007.
Meanwhile the Office for National Statistics, whose statistics lags other surveys because it uses data from completed sales not mortgage approvals, found that overall house prices in the UK went up by 3.8 per cent in the 12 months to September, a 35-month high.
However, when London and the South-East are stripped out of the figures, house prices went up by just 1.4 per cent.
Even though prices in some regions are still below their 2007 peak, most commentators expect prices to rise.
Howard Archer, Chief UK Economist at IHS Global Insight said: “House price rises are expected to be driven by increases in London (especially) and parts of the South East, but house prices are likely to strengthen appreciably in most regions and to make gains across the country.”
Mr Archer added: “An improving housing market is supportive to economic activity and growth prospects.
“However, it is vitally important for economic stability and longer-term growth prospects that a new housing price bubble does not emerge.”
The content published on this website is intended to provide information only. The reader should seek advice from experts on the subject matter and independently verify the accuracy and relevance of any information provided here before relying upon it or using it for any reason. You can view our terms and conditions here.