Further rise in house prices to come
The Royal Institution of Chartered Surveyors said its monthly index — which measures members’ expectations for house prices over the next three months — rose to +34 in May from +32 in April, broadly in line with economists’ forecasts, this takes the index to its highest level since August 2014.
RICS said the number of people looking to buy a house rose sharply in May, but not the same could be said of people wanting to sell their houses, despite the Tory victory in the recent General election.
RICS chief economist reportedly said, “As a result, it is hardly surprising that prices across much of the country are continuing to be squeezed higher with property set to become ever more unaffordable.
The number of properties on sale per surveyor was now its lowest since the survey started in 1978, RICS said, and prices were likely to rise by a quarter over the next five years.
It was pledged by David Cameron in his pre-election manifesto there would be an increase in numbers of homes being built, doubts are now increasing in an early boost to new supply, post election confidence is causing a greater demand of housing which appears not to be there.