House prices rise as demand outstrips supply

A rise in demand for residential property combined with falling levels of supply is leading to higher house prices in many parts of the country.

The figures come from the latest report on the residential property market from the Royal Institution of Chartered Surveyors (RICS). It’s the seventh month in a row that the supply of properties has fallen, reflecting a two-year long trend.

The increase in demand is the first since February and, although it’s small, it does mean that some potential homebuyers will be unable to find a property from the limited stock available. Estate agents are reported to have historically low levels of properties on their books, with an average of just 45.

Hopefully, more homes will come onto the market as the Government’s £5bn boost to housebuilders starts to take effect. However, the impact of that is yet to be felt in the property market and many potential homebuyers will have to wait a long time before they can move into the home of their dreams.