Home-buying on the up again, according to RICS
House prices rose for the second month in a row in December, as homebuyers flocked back to the market, according to new statistics.
The Royal Institute of Chartered Surveyors (RICS) reported that house prices are now rising for the first time after 15 consecutive months of falls, and that they will continue to rise modestly in 2006.
Indeed, eight per cent more surveyors reported a rise in prices over the last three months than a fall, while surveyors also noted the return of first time buyers to the market.
RICS residential spokesman Jeremy Leaf commented: 'The housing market is definitely seeing signs of a recovery. We expect the positive activity at the end of last year to continue over the coming months.'
'Home buying and selling is being supported by a healthy job market and business climate, which looks set to continue for now though one potential obstacle to growth could be a shortage of available properties to meet growing demand.'
However, in spite of the effect of Bank of England interest rate cuts on mortgages, first time buyers face a tough situation as a lack of housing supply is pushing up prices and keeping them off the housing ladder.
Mr Leaf explained: 'First time buyers are in an increasingly difficult position as property prices at their end of the market grow at a disproportionate rate, partially due to continued competition from buy-to-let investors.' | 
