2014 to see house prices rise 8%
Published by Max Salsbury for 24dash.com in Housing and also in Finance
For sale sign
House prices across the UK will rise by an average 8% over the course of 2014 while the cost of renting will increase of 2%, according to RICS.
The organisation has based its predictions on an "acute imbalance between burgeoning buyer demand and sluggish supply with new instructions to estate agents close to stagnating".
RICS is additionally forecasting an increase in the number of transactions, rising to 1.2 million, from 1.05 million in 2013. Total sales in 2006 were well above this at 1.67 million.
London is predicted to see the greatest rise in costs, with RICS expecting prices to soar by 11%. Northern Ireland, meanwhile, is expected to the lowest rise, at 4%.
Though RICS factors a shortage of homes as one of the key drivers for the predicted price increases, it also says that comfort can be drawn from a likely 20% jump in new housing starts across England. It predicts that 2014 will see 155,000 new starts compared with this year's 125,000.
Peter Bolton King, RICS global residential director, said: “The cost of a house is now picking-up right across the country and next year should see more of the same. We expect all areas of the country to see prices increase with London, predictably, recording the biggest rises. The improving economic picture aside, this is largely down to the fact that buyer numbers considerably outweigh the amount of homes on the market.
"While the number of new homes being built is now on the rise, it still won’t be anywhere near enough to meet demand and we expect the problem of insufficient housing stock to be the main driver behind price increases over the next twelve months.”