As 2013 draws to an ever closer end, a new study has revealed that house prices are very likely to continue to rise well into the New Year.
Although the Royal Institute of Chartered Surveyors (RICS) has said that the withdrawal of government scheme, Funding for Lending might have an impact on the number of people who have access to low rate mortgages, house prices are still expected to rise over the coming three months, according to building.co.uk,
In fact, the RICS research revealed that 59 per cent of surveyors estimate that house prices will continue to rise, rather than steady, over the next three months. In addition, 76 per cent believe the number of sales will increase over the same period – indicating a 14 year high in surveyor confidence, reports theguardian.com.
Prices are mostly being driven by demand, which has seen a sharp increase since the government introduced Help to Buy, a scheme which is aimed at helping first time buyers onto the property ladder. This demand has also been fuelled by a lack of available housing, which RICS chief economist, Simon Rubinsohn, says could spell trouble in the future.
“It’s no secret that the housing market is on the way up and prices are surging ahead in many parts of the country,” he stated. “As the Chancellor pointed out last week, housebuilding is on the up, but it is rising nowhere near quickly enough to make up the shortfall that has built up in recent years.”
He added that additional housing is needed, otherwise buyers and renters might soon find they are being priced out of the market.