House price growth still pushed by short supply

14/10/2009

We might be coming out of the recession slowly but new figures suggest we're far from returning to business-as-usual.

According to the Royal Institution of Chartered Surveyors house prices rose in September, up by ten per cent from August to 22 per cent.

This is the highest result since May 2007, but the figures don't necessarily mean we're on the home straight – the average number of unsold properties on surveyors' books has stuck, says the RICS.

The picture is also different around the country. Prices have been most buoyant in the south of England, the survey showed. While surveyors reported more price falls than rises in Wales, as well as Yorkshire and the Humber.

Body spokesperson, Ian Perry, says a lack of supply is still underpinning the rise in house prices.

The imbalance between first-time buyers struggling to put down huge deposits and the increasing amount of potential buyer enquiries suggest that house prices will rise in the near future.

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