House prices ‘look set to rise faster than wages’ House prices look set to rise faster than wages despite weak transaction levels, according to property surveyors.
The Royal Institution of Chartered Surveyors (RICS) said the overwhelming majority of its members expected prices to rise across Britain by around 3.5% each year during the next five years, despite signs that the market has become more subdued recently.
“Perhaps the most ominous signal emanating from the data… is that contributors still expect house prices to increase at a faster pace than wages over the medium term despite the difficulty many first time buyers are clearly having in taking their first steps onto the property ladder,” RICS chief economist Simon Rubinsohn said.
RICS said demand, new instructions and sales all fell in May, with price growth easing too.
Fewer homes were put up for sale and the average number of properties on estate agents’ books was just 43, it said.
Surveyors reported the biggest slide in listings since the wake of the Brexit vote last year.
RICS said a “sheer lack of supply continues to support prices for the time being”.
Not great news for first time buyers but encouraging for people who currently own their own home and may want to remortgage.
I was looking yesterday at house prices in england and unconfortably the slowest growth out of all arears is the north east