House prices up – for now

HOUSE prices appear to be rising again as buyers return to the market.

A majority of property professionals reported an increase in inquiries in February over January, the Royal Institute of Chartered Surveyors (Rics) said.

Sales of new homes increased for the third successive month. However, Rics warned that the return to growth could yet stumble, with members worried about the impact of the coronavirus outbreak.

People may be less likely to view, hampering the crucial spring selling season.

Simon Rubinsohn, chief economist at Rics, said: ‘It is encouraging that the results of the survey continue to show a positive trend both in terms of potential buyer interest and new instructions. The firmer trend in appraisals suggests that the picture could improve providing the coronavirus doesn’t become more of an inhibitor.’

Rics said a net balance of 20pc of surveyors – meaning more were positive than negative – saw a rise rather than a fall in housing market inquiries in February.

Meanwhile, a net balance of 29pc of surveyors reported house price increases in February. All regions saw growth with London, Yorkshire and the Humber, and East Anglia having the biggest boosts.

Adding to the potential bounce, a net balance of 22pc of surveyors expect house prices to increase further over the spring.

There are also signs that supply is increasing with the number of new homes coming onto the market nudged up for a third successive month, with West Midlands and the South East seeing the biggest bump.