Property prices across the UK rose by an annual 2.6 per cent in the three months to May, according to The Royal Institution of Chartered Surveyors (RICS), signalling the largest increase in the sector since June 2010.
Offering positive news for investors and homeowners alike, the RICS survey reported that its seasonally adjusted house price balance for May came in at +5, higher than the +4 that had been predicted by economists polled by Reuters. The balance stood at +1 the month before.
Policies aimed at loosening credit conditions have been held responsible for the increase, as new buyers return to the market once again. New buyer enquiries reached 2009 levels last month, according to RICS, as schemes such as the Bank of England’s Funding for Lending Scheme and the Government’s Help to Buy policy kicked in.
Peter Bolton King, RICS global residential director, told Reuters: “More people decided to get out there and view property, and more transactions went through than in quite some time.” He added that the housing market was stabilising across the country, not just in the more affluent south-east, but noted: “There is still a very long way to go until we see a full-scale recovery but green shoots are beginning to sprout.”
Mortgage lender Halifax also recently reported a rise in property prices across the country, with Halifax economist Martin Ellis confirming that prices rose by 0.4 per cent in the month of May alone. RICS members were reported to have sold 17.9 homes on average in the three months to May, representing the highest amount since January 2010.