Rics: UK property supply not meeting demand
Demand for UK property is outstripping the supply on the market leading to price rises, according to the Royal Institution of Chartered Surveyors (Rics).
In the recent Rics UK Housing Market survey it was revealed that the number of new instructions has increased for six months in a row and enquiries from buyers are also on the up. It believes that these factors are contributing to an increase in house prices.
Simon Rubinsohn, chief economist at Rics, said: "The main reason for prices rising is that even though new instructions to estate agents have now at last begun to pick up a bit and supply of property is picking up a bit, it is still not keeping pace with the increase in demand."
He added that "prices probably will rise further" in 2010 due to market pressures.
Figures from Countrywide Mortgage Services released on December 14th revealed a 43 per cent increase in mortgage applications as buyers return to the market.
Mr Rubinsohn said that a number of factors could affect property prices in 2010 including the return of VAT to 17.5 per cent and a possible increase in interest rates.
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