House price rises speed up

RICS estate agents reported that all regions are now experiencing price rises for the first time in over two years. And 31 per cent more chartered surveyors reported a rise than fall in July, up from 28 per cent in June.

London and the South East remain the strongest housing markets boosted by a strong financial services sector.

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Healthy gains in house prices were also recorded in the North West, Scotland and the South West, but the rest of the country is showing only muted gains.

With demand strengthening and new instructions moving into decline, surveyors remain optimistic over the outlook for house prices in the next three months despite the recent rise in interest rates.

RICS spokesperson, Jeremy Leaf, said: “The increase in interest rates will do little to dampen the market as a strong economic outlook and improving employment prospects will hold up the confidence of households.

“Further interest rate rises are to be expected later this year and will slow activity in early 2007.”

Leaf says that rising house prices are still preventing first-time buyers from entering the market, creating a property glass ceiling for many in London and the South East.

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