Strong housing demand despite interest rate hikes
Published On 19 December 2006
New figures from the Royal Institution of Chartered Surveyors (RICS) have indicated that demand for houses in the UK is still strong despite recent interest rate hikes.Last month, 47.4 per cent more chartered surveyors reported a rise in house prices than a fall.
This figure is slightly down on the 47.7 per cent recorded in October but double the long period average of 21 per cent.
Despite quarter point interest rate rises in both August and November, it appears that potential house buyers are not being put off, as RICS spokesman, Jeremy Leaf, explained.
"Strong employment conditions and a robust economy continue to shield the market from any dip," he said.
"While concerns remain about high consumer debt levels, households still view their finances as strong."
He added that while a likely interest rate rise in the new year may have a moderate effect on prices, RICS expects house values to rise by seven per cent during 2007.
November was the 13th consecutive month of house price growth.
