UK house prices jump as buyers seek gardens after lockdown - RICS
Reuters
Published Sep 10, 2020 00:03
Updated Sep 10, 2020 08:31
LONDON (Reuters) - The post-lockdown surge in Britain's housing market intensified in August, and prices hit a four-year high, as buyers sought properties with gardens, according to a survey that also sent a warning signal that the recovery could run out of steam.
The monthly gauge of house prices from the Royal Institution of Chartered Surveyors (RICS) shot up to +44 in August from +13 in July, hitting its level since February 2016. A Reuters poll of economists had pointed to a reading of +25.
Prices rose across the country except for London where they have remained more or less flat over the past two months.
The survey chimed with other signs that a mini-boom is underway in the housing market - one of the few parts of the economy to have bounced back from the pandemic - helped in part by an emergency tax cut for buyers.
Demand accelerated sharply, helped by a shift towards properties with gardens after the COVID-19 lockdown, RICS said.
Some 83% said they expected to see higher demand for properties with gardens and most predicted reduced demand for homes in highly urban areas or tower blocks.
"The latest RICS survey provides firm evidence of a strong uplift in activity in the housing market which should help support the wider economy gain traction over the coming months," RICS chief economist Simon Rubinsohn said.
Still, there were some ominous signs.
The survey's gauge of sales for the next 12 months deteriorated further in August, dented by worries about the economy.
Last week Bank of England Governor Andrew Bailey said it was too soon to say if the rebound in the housing market was anything more than a release of pent-up demand following lockdown, helped by the temporary cut to property taxes.
Get The App
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.