Is UK Housing Market about to take off?
Posted by admin in Housing
Forbes reported today that the UK housing market ended 2005 on a much better note than it had started the years at. In the month of December prices rose for the second straight month after 15 months of decline.
They go on to report that, "In its monthly survey of the sector, the Royal Institution of Chartered Surveyors found that 8 pct more surveyors reported a rise in prices over the last three months than a fall compared with 4 pct in November."
The survey confirms what other others have found that the housing market had become stable near the end of 2005.
RICS residential spokesman Jeremy Leaf tells us that, "The housing market is definitely seeing signs of a recovery and we expect the positive activity at the end of last year to continue over the coming months."
The RICS also said that in what is usually a very slow time of year the houses sold rose by 8% in the three months up until December. This is the highest level it has reached since September of 2004.
They also say that Scotland and London were the leading the way, while the Midlands and East Anglia were still somewhat falling.
There is also expectation that there will be gradual rises in price continuing through the next three months. Interest rates are expected to fall which should result in stimulating buyer confidence. The number of new buyers has risen 7 months in a row, the longest stretch since 1999.
There is now concern that there may not be enough supply to meet the demand; the one obstacle that could derail the potential recovery.
In a separate survey Haart estate agents show that in the London property market there was a 100% increase in activity compared to the same time a year ago. And the National Association of Estate Agents said that December's figures were up 33% from a year ago.
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