31
Mar
Property price increase 'is no surprise'
Figures showing a rise in UK house prices for March should not come
as a surprise, according to one expert.
Simon Rubinsohn, chief economist at the Royal Institution of
Chartered Surveyors (RICS), noted that an increase is inevitable
since supply is not yet matching demand.
While more homes are coming onto the market, he said, they have not
reached a level that would bring about declines in value.
Mr Rubinsohn was commenting on Nationwide figures that showed
growth of 0.7 per cent in the cost of a typical UK home - with
buyers said to be cautious due to economic and political
uncertainty.
The RICS specialist suggested that the increase in the stamp duty
threshold - announced in last week's Budget - is likely to "provide
a further boost for demand", adding: "As a result, we continue to
believe that house prices will remain firm through much of the
remainder of this year."
