THE resurgent housing market showed little sign of slowing for the summer as it chalked up the fastest price rises for more than two years, a leading survey showed yesterday.
Property values rose across the country in July, with 31 per cent more surveyors reporting increases in prices than falls, up from a figure of 28 for June, the Royal Institution of Chartered Surveyors (RICS) said. The figure suggested that prices were rising at their fastest pace since May 2004.
The data underscored the continued risk that the housing market could overstimulate consumer spending and contribute to rising levels of inflation. Such concerns lay behind the Bank of England’s decision this month to raise interest rates for the first time in two years. RICS said that the supply of new property had fallen for a second month even as sales activity rose, pushing up prices. Its survey showed that estate agents remain optimistic for the short-term health of the market.
The Department for Communities and Local Government yesterday reported a slight slowdown, however, with prices up by 5.2 per cent in the year to June compared to 5.6 per cent for the previous month.