Property News

RICS: Larger properties driving house price increase - 16/05/2006

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The latest increase in house prices is being driven mainly by large and mid-range properties, reveals a study by the Royal Institution of Chartered Surveyors (RICS).

Houses with three or four bedrooms are generally priced higher than flats, as a shortage of properties and increased buyer demand pushes up house price inflation.

The number of properties available to buy has decreased by ten per cent since August 2004 while the rise in buyer enquiries in April sees the eleventh consecutive increase.

The RICS says that the increase in prices of large houses is a sign of buyers' healthy finances.

Jeremy Leaf, spokesman for the RICS, said: "Greater economic wealth has boosted prices for larger properties as buyers remain content to invest for the long-term, with a rising stock market not detracting interest in real estate."

It was previously reported by the Department for Communities and Local Government (DCLG) that flat prices had increased by 7.7 per cent for March.

Surveyors expect house prices to continue to climb over the coming months, although they feel less optimistic than previously.

This tallies with the DCLG's observation that March saw a fall in the house price inflation rate from 3.4 per cent in February to 3.3 per cent and that prices are increasing at a lesser rate than at the same point last year.

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