House prices are rising in every region of the country, reports the Royal Institution of Chartered Surveyors (RICS), with the trend set to continue.
The RICS monthly residential market survey also found that new buyer enquiries grew for the fifth consecutive month in August.
It adds that after a “sustained period of easing” towards the end of 2014, house price growth has now quickened consistently for the past seven months.
The strongest growth was experienced in East Anglia, Northern Ireland and Yorkshire and the Humber. However, the report adds: “The vast majority of areas are seeing a sizeable increase in values.”
House Price Growth in All Regions, Reports RICS
Terry Brannen, of Brannen & Partners in Newcastle, reported to the RICS: “Strong sales figures for this time of year proves confidence is still present in the marketplace.”1
Alex McNeil, of Bramleys in Huddersfield, claimed: “Market activity has been maintained during the summer months with stock levels gradually dwindling. The sustained demand has been a recipe for capital growth.”1
The study says that once again, house price inflation is the result of the lasting trend of declining new sales instructions and increasing buyer demand. It predicts that prices will rise by 6% over the rest of the year.
Chris Beeby, of Bletsoes estate agent in Thrapston, Northamptonshire, told the RICS: “A real lack of fresh instructions still stifling the market. Looking forward to the end of the holiday season and hoping for a good autumn market.”1
New vendor listings dropped for the seventh month in a row, although the rate of that decrease seems to be falling moderately.
This means that there has not been a marked rise in monthly new instruction levels since mid-2013, causing average stock levels to drop to record lows.
The study found that regional sales varied significantly.
The West Midlands, the North of England and the South West all reported solid growth, however, East Anglia and the North West saw a drop in sales volumes.
In the future, the RICS expects to see “significant sales growth”1 in all parts of the UK over the next 12 months, with the estimate looking particularly strong for Wales and Scotland.
In the lettings sector, the RICS found that tenant demand grew for the eighth consecutive month. As a consequence, rents are expected to increase in the near future. It adds that over the next five years, UK-wide rents are forecast to rise by 4.5% per year.
Jeremy Fisher, from The Frost Partnership in Beaconsfield, says: “Beaconsfield is seeing an upturn in both tenant and landlord activity with the quality of both very good.”1
Separately, the latest e.surv Mortgage Monitor revealed that there were 69,220 house purchase approvals in August, up by 9.3% annually.
There was also a 0.7% increase in purchases compared to July this year and 12,000 small deposit mortgages were approved – a post-recession record.