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Home Prices Are Under Upward Pressure As “For Sale” Listings Decline | Economic news

House price growth is accelerating as sellers pull out of the market as demand remains buoyant, according to a new report.

A monthly survey by the Royal Institution for Chartered Surveyors (RICS) indicates that a net balance of 75% of real estate professionals have seen prices rise rather than fall.

The measure is at its highest level since the 1970s and has increased for three consecutive months.

HEALTH-CORONAVIRUS / BRITAIN-BUDGET British Chancellor of the Exchequer Sunak presents budget box in London British Chancellor of the Exchequer Rishi Sunak holds budget box outside Downing Street in London, Britain on 3 March 2021.  REUTERS / John Sibley TPX IMAGES OF THE DAY
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He comes as separate house price indices show the market was supported by Rishi Sunak’s extension of a stamp duty holiday announced last year.

The latest RICS report, covering the month of April, showed a measure of buyer demand, at 44%, continuing to recover to similar levels through March.

But the level of new real estate listings was “not enough to match the interest shown by potential buyers,” according to the survey.

The balance of new sell instructions fell from + 21% in March to -4% in April.

RICS Chief Economist Simon Rubinsohn said: “The supply of housing, or more aptly, the deficit of supply versus demand is the key theme that is coming out loud and clear.

“While it may be simplistic to assume that higher numbers on their own may solve the affordability problem, especially in a
interest rate environment, an increase in delivery has a role to play. “

The government earlier this week outlined its latest ambitions to create a simpler and faster planning system to speed up construction of new homes.

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This notice was published: 2021-05-13 06:24:00