Slower pace in rise of house prices noted

The number of Chartered Surveyors who reported a rise in house prices fell to 30 percent in December ’09, indicating that the rise in prices have slightly slowed down, according to RICS UK Housing Market survey.

The figure represents a five percent drop compared with the 35 percent of surveyors that reported an increase in November. However, there are still reports of increases in some parts of the UK, particularly in London, the South East, the South West and East Anglia.

But it’s a different story in the North and West Midlands as surveyors in the area have noted drops in house prices which could mean that while the housing market has recovered in some parts of the country, there are still areas in the UK which have not fully recovered.

RICS spokesperson, Jeremy Leaf said, “New enquiries are continuing to outpace new instructions which is helping to push house prices higher. The recent loss of momentum in prices and the moderation in new buyer interest can be in part attributed to the housing market pulling down its shutters for Christmas. It is likely that the new year will see more interest and activity in the market as those who held back start to market their property with renewed optimism.”

Chartered Surveyors also reported an increase in the number of new instructions for the seventh consecutive month. At least 17 percent more Chartered Surveyors have reported an increase in new instructions.

RICS said the demand for property is still outstripping new supply but the industry is slowing narrowing down the gap.