Housing market enjoys strong May

Posted: 15 Jun 2006 09:11:14 GMT

A new report from the Royal Institution of Chartered Surveyors (Rics) has cast doubt on recent suggestions that the property market is cooling.

According to Rics, house prices increased at their fastest pace for two years in May, despite rumours that activity has been slowing because of extensive speculation over higher interest rates.

There were also more enquiries from potential buyers in May, meaning that this particular figure has now increased in each of the last 12 months.

While demand from buyers has remained strong in the last few months, Rics has also observed a healthy rise in the number of sellers on the property market.

Around 18 per cent of surveyors noticed a rise in the number of houses for sale in May and this is the biggest increase seen for a year.

Rics spokesman Jeremy Leaf said: "The strength of the housing market suggests consumer confidence in the UK economy."


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