House prices still rising
May 15, 2007 by admin
Filed under News, News-Mortgages
House prices have continued to accelerate, with the latest figures showing a rise for the 18th consecutive month.
The Royal Institute of Chartered Surveyors (Rics) has published housing market survey and it makes for bad reading for first-time buyers.
Statistics shows that new buyer enquiries fell for the fifth consecutive month in April and the decline is taking place at a faster rate.
Rics says that this is down to the latest round of interest rate rises which helped to make more homes unaffordable.
“Last week’s interest rate hike may not be the last as the housing market has not slowed as quickly as expected given the initial round of rate rises,” commented Ian Perry from Rics.
“With prices buoyant and conditions still tight, another rate rise later in the summer looks likely.”
Things look set to get worst for first-time buyers as the introduction of Home Information Packs (Hips) in June may force some sellers to take their properties of the market.
Currently, the housing market is benefiting from increased supply as people try to avoid having to fork out for a Hip and prices still continue to rise.
“The fear of paying the upfront buying costs of Hips has pushed more property onto the market,” said Mr Perry. “This will continue throughout May but conditions should tighten if Hips goes ahead on June 1st as sellers withdraw from the market.”
