'Lack of supply underpins rise in house prices'

Posted: 13 Oct 2009 12:31:59 GMT

A rise in property prices is being underpinned by a lack of supply, according to a spokesperson for the Royal Institution of Chartered Surveyors (Rics).

Ian Perry said that new instructions to estate agents have edged up "very gradually" in recent months.

His comments come after Rics revealed that the net balance of chartered surveyors who reported an increase as opposed to a fall in house prices grew ten per cent between August and September.

The balance was reported to be 22 per cent last month, which represented the highest reading for nearly two and a half years - it was 25 per cent in May 2007.

London and the south-east-based surveyors were more likely to have reported an increase in house prices, compared to their counterparts in other areas of the UK.

Mr Perry also indicated that the level of enquiries from potential house buyers increased in September.

Rics' research was published after both Nationwide Building Society and Halifax claimed that the value of a typical UK home went up in the last month.


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