Rics reacts to report on house prices

Posted: 01 Jun 2009 07:41:42 GMT

Nationwide Building Society's report on property prices is consistent with the Royal Institution of Chartered Surveyors' (Rics) sales-to-stock ratio findings.

On Friday, the building society indicated that the average cost of a UK home had moved up 1.2 per cent in May - compared to the previous month - and Rics suggested this is a sign prices are stabilising.

According to Nationwide, the increase in property values now means the average residence in the country is now worth £154,016 - up from £151,861 in April.

Rics said its sales-to-stock ratio has moved in an upwards direction for the last four months in a row.

This, it claimed, is "historically a good lead indicator of turning points in house price inflation".

Like Nationwide, the chartered surveyor group believes it is too early to conclude that the property market is in complete recovery, although there are a number of regions in the UK where prices are beginning to climb.

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