House prices still on the up

Tue Nov 10 2009 17:10:14

House prices continued to rise in October despite an increase in the number of homes being put up for sale.

The Royal Institution of Chartered Surveyors said 34 per cent more surveyors reported seeing price rises rather than price falls during the month, the highest level since December 2006.

The increase came despite evidence that sellers are beginning to return to the market, with a balance of 15 per cent of surveyors reporting a rise in instructions, up from just 5 per cent in September.

The group said the number of people looking to sell their home rose in all regions of the UK for the first time since the credit crunch struck.

But despite this, the average number of unsold properties chartered surveyor estate agents had on their books remained broadly unchanged for the third consecutive month at 64.

Economists have attributed the recent strength of the housing market to a shortage of homes for sale and they have warned that as more properties are put on to the market, prices could start to fall again.

But surveyors expect house prices to continue rising over the coming three months, with 31 per cent more expecting a rise rather than a fall in the value of property, up from a balance of 25 per cent in September.

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