The RICS chief economist said: “For the market to operate effectively we desperately need more homes in areas where people want to buy and want to live.
“Until this happens we are likely to see prices to continue to increase, and it is going to be ever harder for many first-time buyers to conceive of ever owning their own home.”
His comments came on the back of a report published by the professional body that showed that during the first three months of 2014 the average number of houses sold across the country jumped to its highest level in six years.
At the same time, there has been significant price increases: 57 per cent more chartered surveyors report rises, and prices in the south-west and East Midlands demonstrate the most noticeable growth.
The RICS report predicted house prices would rise over the next five years, from 2 per cent a year in the north to 9.3 per cent a year in London.
The research also revealed that the number of buyer enquiries had increased across the whole of the UK, with the exception of Wales, where interest remained static.
Background The latest report from LSL Property Services showed house prices have climbed an average of £17,500, or 7.2 per cent over the past 12 months, although sales slowed in March because of a shortage of homes and poor weather. Prices hit a record £262,291, the highest annual rise since September 2010, making them 26 per cent higher than the average in April 2009 when property values reached their lowest point following the global crash. London showed “lightning fast growth”, with prices rising twice as fast as any other region. |
Adviser view
Daniel Bailey, director and mortgage broker at Derbyshire-based Middleton Finance, said: “There is a distinct lack of stock on the market to the extent that you have 10-15 clients going for the same house. Most first-time buyers these days receive help from grandparents and parents to get their deposit together. Sadly it is a difficult market, not just in London.”
