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- U.K. house prices to rise due to supply shortage - RICS
U.K. house prices to rise due to supply shortage - RICS
Bloomberg reports that the figures from the Royal Institution of Chartered Surveyors showed that U.K. house prices are likely to surge further in the next year because of a shortage of new properties coming onto the market.
The figures suggest that the expiration of a tax break on purchases will do little to slow what’s been a red-hot market. It’s one of the signals that inflation is picking up across the U.K. and starting to alarm policy makers at the Bank of England.
RICS said the number of estate agents seeing new properties come to market in July fell to its lowest since April 2020. A balance of 66% of respondents to the survey expected prices to rise in the next year, up 10 points from June. Areas far from city centers benefited most, notably the north of England, Wales and East Anglia.
A net balance of 79% of property appraisers saw an increase in prices in July, just shy of the 82% reading the month before.
The average asking price of apartments has climbed about 1% since the start of the pandemic while detached houses rose 10%.
The number of agreed sales of flats rose 14% in June and July from the year before and were 24% higher than the same months in 2019.
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