Large properties lead house price rise

The UK housing market survey shows that house prices rose as demand has further stabilised on the back of the strengthening economy.

For the three months up to April, 15 per cent more chartered surveyors reported a rise in house prices than a fall, up from 12 per cent in March.

Larger and mid-range property types are showing dispoportionate price gains compared to underperforming flats, the largest variation of performance since 2001.

Pre-1960 houses with two or three bedrooms are leading the way with the largest price rises for almost two years.

RICS Spokesperson, Jeremy Leaf, said: “The rise in house prices suggests a return of confidence to the market boosted by a healthy economic climate.

“Greater economic wealth has boosted prices for larger properties as buyers remain content to invest for the long-term, with a rising stock market not detracting interest in real estate.”

Confidence in the industry remains high and is still above the historical average for the survey.

Buyers’ enquiries have continued to rise in April for a record breaking eleventh month in a row, as households fell confident in the economic climate.

Scotland and London are still the strongest housing markets while the northern regions are showing a healthy competitive edge.

Price falls are still affecting the Midlands reflecting a weak manufacturing picture.

Leaf said: “Low interest rates have encouraged householders to enquire about the purchase of a new property with the market showing few signs of being derailed by the recent spike in petrol prices.

“But, the drop in available stock is indicative of a market tightness with the balance of the market swinging in favour of sellers coming into the strong selling period of May and June.”

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