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‘Further house price gains expected in 2010’ say experts

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House prices are expected to rise by between 1% and 2% over the next year, in line with increases seen in 2009, the Royal Institute of Chartered Surveyors (RICS) has predicted.

In the early parts of 2010, house prices should show a minimal increase as there will be adequate supply to meet owner demands. But as the year progresses, surveyors believe prices will start to rise due to housing’s struggle to cope with homeowners’ needs.

Unfortunately, the average number of properties chartered surveyors estate agents have on their books is likely to remain close to historical lows. But the RICS claim that as the gap between supply and demand narrows, surveyors should start to notice an increase in business.

“The imbalance between supply and demand will continue into the early part of the new year resulting in some further house price gains,” said Simon Rubinsohn, RICS Chief Economist.

“However, the combination of more available property and the beginning of the exit strategy from the big stimulus programmes that have helped support the economy will gradually exert a greater influence.”

And the RICS argue that the number of average housing transactions taking place each month is also expected to increase by approximately 10,000, from 55,000 to 60,000 at present, to 70,000 by the end of next year.

“Transaction levels are likely to increase, fulfilling the Christmas wish list of many agents throughout the country, but first-time buyers are likely to continue to struggle to procure finance from lenders without the help of generous relatives,” added Mr Rubinsohn.

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Written by Andrew Hodges

December 29, 2009 at 4:49 pm

Posted in Comment, LinkedIn

Tagged with , ,

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