New instructions rose for the third consecutive month in February, while buyer inquiries rose for the 11th consecutive month, the RICS reported this morning.
It said that while there had been a further increase in activity, market conditions remained tight with house price growth retaining “a considerable amount of momentum for the time being” – apart from in central London.
The RICS predicts that general UK price momentum may start to fade towards the latter part of this year.
However, this morning’s report warns on the central London market, saying there are signs of a downturn, with demand dropping due to tax changes, slow-downs in foreign markets and Brexit uncertainty.
Almost one in three RICS estate agents in London (28%) who responded to the survey are expecting a fall in prices over the next three months.
Historically, major housing events, including both crashes and booms, begin in central London before rippling out. By contrast, hiccups in prices and sales volumes tend to be localised trends.
The overall RICS survey was completed by just 317 respondents, representing 569 branches.
While the RICS does not give prices in its survey, the LSL/Acadata house price index does.
Also published this morning, it said that house prices had jumped 0.8%, or £2,277, on average in February compared with January.
The survey put the average house price at £289,229, 6.2% higher than February last year.
Across Greater London, annual house price inflation was 6.8%, which equated to an average rise of £36,903 – more than the average Londoner’s annual salary of £35,333.
The average Greater London house price in February was £582,783.
Comments are closed.