UK house prices continue to climb - RICS
UK house prices climbed in November, industry research showed on Thursday, as the market continued to strengthen.
According to the latest residential market survey from the Royal Institution of Chartered Surveyors, a net balance of 25% of respondents saw an increase in prices in November, a notable jump on October’s balance of 16.
It is also the fourth consecutive month that the balance has strengthened.
The survey showed almost all parts of the UK had seen an upturn in prices, though the strongest growth was in Northern Ireland.
Respondents also expected prices to continue rising in the short and medium-term, which RICS said reflected a "robust"” outlook for the year ahead.
The new buyer enquiries balance was 12 in November, unchanged on October, while new instructions rose for the fifth consecutive month, with a net balance of 17.
But agreed sales volumes were broadly flat, with the balance falling to 1 from 8 a month previously.
Tarrant Parsons, head of market analytics at RICS, sounded a note of caution, however
He said: "Although the latest survey results continue to signal a steady improvement in buyer demand, the broader macro environment is likely to pose additional headwinds moving forward.
"Most significantly, the recent rise in mortgage interest rates may curtail the recovery in market activity.
"Moreover, measures of consumer and business confidence across the economy have deteriorated of late and, if sustained, this begin to feed through into housing market conditions in the months ahead."
Mortgage rates have ticked higher recently, while consumer sentiment was dented over concerns around the Budget. But most expect mortgage rates to continue easing over the medium term.
Rightmove, which published its annual forecasts for the UK housing market on Thursday, expects rates to fall to 4% in 2025 as the Bank of England continues to cut the cost of borrowing.