UK home sales highest for six years, says Rics

 

Peter Bolton King from Rics says there is no need to panic with regard to rising house prices

The number of UK homes sold per surveyor has more than doubled since the depth of the housing market downturn, a survey suggests.

Just over 21 sales per estate agency branch were recorded in the final three months of 2013, the Royal Institution of Chartered Surveyors (Rics) said.

This was the highest number since March 2008, and up from 9.8 in January 2009.

The survey found surveyors expected prices and sales to keep rising.

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Rising prices - which have been a feature of recent months - have mainly been the result of more buyers chasing the relatively few homes on the market.

"Unless we see a marked increase in the number of homes coming up for sale we could well be looking at a price rises becoming unsustainable in some areas," said Peter Bolton King, global residential director at Rics.

Yet housebuilder Bovis Homes said in a statement on Thursday that the number of new homes being completed was rising, and there had been a big rise in the number of forward sales.

The statement came ahead of its full-year results, which it said would show a "significant increase in profit before tax for 2013".

Its average sale price was up 14% to £195,100, because it had built more homes in the south of England and more larger properties, it said.

Predictions

A number of commentators have predicted average price rises of between 4% and 8% in the UK in 2014.

The latest house price survey from the Office for National Statistics showed that year-on-year property price growth stood at 5.4% in the UK in November.

Excluding London and the south east of England, the ONS said prices were up by 3.1%.

The Bank of England has recently pulled back from offering cheaper funds for lenders to hand on in mortgages through the Funding for Lending scheme.

 

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  • rate this
    -1

    Comment number 540.

    More housing is required - either through new builds or renovating existing properties (little mention of this by anyone)...this should mitiate against the pricing bubble currently being inflated.

    Plus tax changes to reduce the numbers of buy to let landlords. How about, reducing council tax for owners of a single property and increasing it for those owning multiple properties?

  • rate this
    +1

    Comment number 539.

    An exploding population - largely in immigrant population centres - limited house building, the rise of 'buy to let' & the increase of overseas investors leaving housing empty has created a 'perfect storm' leaving too few resources being chased by too many people.

    Demand has to be reduced, not by building more but increasing interest rates to make borrowing large sums less attractive.

  • rate this
    +1

    Comment number 538.

    Well here we go again. I have been wondering for sometime whether George Osborne was morphing into Gordon Brown.

  • rate this
    +1

    Comment number 537.

    530.fuzzy
    Are we at cross purposes here? I don't see what market forces have got to do with it?
    =
    You seem to not understand the price mechanism. Neither does government, the ones you're suggesting should determine prices.

    "yes?"
    =
    Yes, and more. But, a business also must do it all while remaining solvent, and suffering direct competition from other insurers. Does government suffer that?

  • rate this
    +2

    Comment number 536.

    528Sally the Rothbardian

    On infrastructure, let's take rail as an example;

    ===
    No, let's get to one point regards LVT, or the lack of it, that interests me. If I buy some spare land with intent to sit on it while others about me develop theirs and build roads etc then my land increases in value while I do naff all - I profit form others labour. Isn't that free riding?

  • rate this
    +2

    Comment number 535.

    We need the private sector out of public housing - houses need to be seen as dwellings not an investment substitute for 2nd rate private sector pensions.Tax laws need to be changed to discourage huge buy to let portfolios.

  • rate this
    +2

    Comment number 534.

    this is great news. Hard working people deserve to own their own homes.


    Tory plans are working.
    -Yes definitely working having failed miserably to get genuine growth through rebalancing the economy they have succeeded in producing growth based on increased debt and house price inflation while real wage levels for the vast majority drop and manufacturing contracts.

    Well done George

  • rate this
    0

    Comment number 533.

    So we have gross property inflation. There are two things truly worth having: a decent place to live, and free time. The cost of neither of these is included in RPI or CPI, so inflation figures are meaningless.

    GO wants NMW increase: good for those on it. But its purpose is only to make up some of what people have lost through true inflation, sustain this bubble, and inflate away our DEBT

  • rate this
    +1

    Comment number 532.

    Osborne gave up any hope of rebalancing the economy by the middle of last year when growth had vanished. Help to buy should be renamed make harder to buy. We have mortgage consmer fuelled precarious recovery when banks should be lending to businesses. Same old..

  • rate this
    +2

    Comment number 531.

    @485.Sally the Rothbardian

    How do you then stop corporations buying up the land all around you and "fencing you in" with horrid housing?

    There has to be some kind of commonly agree rules to planning

  • rate this
    0

    Comment number 530.

    517.Sally the Rothbardian

    How can it, when an insurance company, a business, is exposed to market forces, while the government is not?
    ===
    Are we at cross purposes here? I don't see what market forces have got to do with it?
    An insurance company needs to assess the value of the property separate from the land in order to insure it, yes?

  • rate this
    +1

    Comment number 529.

    Does Mr Boulton have a house and want to make a profit from it?

    Of course rising prices are a problem. Seems that the UK is as obsessive with house prices as Duran Duran was with the orgasmatron in Barbarella. As obsessive as a foaming rabid dog is to a leg.

  • rate this
    -1

    Comment number 528.

    522.fuzzy
    On infrastructure, let's take rail as an example;

    The steam engine was invented privately, as was our entire early rail network, and the Great Northern Rail in USA. Indeed, even our own government hires private contractors to construct and often manage its infrastructure.

    Clearly, we don't need an expensive politburo, or its extortionate LVT, to invent and provide infrastructure.

  • rate this
    +2

    Comment number 527.

    The government has a rhino on a lead and whatever they do to stop the charge makes the market more attractive for the wrong buyer. They must find a way of ensuring that ALL house purchases are made by using mortgages rather than cash, and house buyers must have been here for at least 5 years. Only then will the prices stabilise. My ex-council house goes up £1500 per month in value - it's madness!

  • rate this
    +1

    Comment number 526.

    The 4/5 fiasco represented THE most idiotic course of action that could possibly have been taken. Osbourn has as little credibility as Cameron and should be shunted out.
    Public housebuilding is a must otherwise Team PAYE continues to pay a fortune to fund landlord profits via "welfare". The roi for tax payers would be substantial as would the boost for the building industry.

  • rate this
    +2

    Comment number 525.

    520. scotvik

    Your comment about the stark contrast between London and the North fuels into the argument of rehousing homeless families from London into properties in North England, where the demand is significantly less.

    I see this as social cleansing leaving a very divided country, and in the main, very wrong, but it's an interesting debate to be had with some interesting view points.

  • rate this
    +1

    Comment number 524.

    Hmm I smell a bubble in the making.

  • rate this
    +4

    Comment number 523.

    It doesn't matter how many houses are sold if less homes and built than at any time since the 1920's this is a recipe for a house price bubble and we have been their before!

  • rate this
    +1

    Comment number 522.

    514.PlainText

    You said that it's not a tax and then gave a reference that in it's first sentence said that it is - what am I supposed to think?
    ===
    Yes, sorry. But I don't think the name matters. If you've good infrastructure then your land has greater value than if you've naff all, and you should pay for it - that's the idea. It's had good results, that's why I'm looking at it but 400ch...

  • rate this
    -2

    Comment number 521.

    In areas of housing pressure a household should only be allowed to have one house or flat.
    Multiple house ownership and buy-to-let should be banned.
    All second and third homes etc and buy-to-lets should be expropriated by the people's representatives without compensation, and sold to first-time buyers, starting with the multiple homes owned by ex-careerist politicians Blair and Huhne.
    Alan

 

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