UK house prices jump as buyers seek gardens after lockdown – RICS


© Reuters. FILE PHOTO: Terraced houses are seen in Primrose Hill, London

LONDON (Reuters) – The post-lockdown surge in Britain’s housing market intensified in August, and prices hit a four-year high, as buyers sought properties with gardens, according to a survey that also sent a warning signal that the recovery could run out of steam.

The monthly gauge of house prices from the Royal Institution of Chartered Surveyors (RICS) shot up to +44 in August from +13 in July, hitting its level since February 2016. A Reuters poll of economists had pointed to a reading of +25.

Prices rose across the country except for London where they have remained more or less flat over the past two months.

The survey chimed with other signs that a mini-boom is underway in the housing market – one of the few parts of the economy to have bounced back from the pandemic – helped in part by an emergency tax cut for buyers.

Demand accelerated sharply, helped by a shift towards properties with gardens after the COVID-19 lockdown, RICS said.

Some 83% said they expected to see higher demand for properties with gardens and most predicted reduced demand for homes in highly urban areas or tower blocks.

“The latest RICS survey provides firm evidence of a strong uplift in activity in the housing market which should help support the wider economy gain traction over the coming months,” RICS chief economist Simon Rubinsohn said.

Still, there were some ominous signs.

The survey’s gauge of sales for the next 12 months deteriorated further in August, dented by worries about the economy.

READ  Pompeo urges UK action as China tensions rise

Last week Bank of England Governor Andrew Bailey said it was too soon to say if the rebound in the housing market was anything more than a release of pent-up demand following lockdown, helped by the temporary cut to property taxes.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





READ SOURCE

LEAVE A REPLY

Please enter your comment!
Please enter your name here