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Tuesday, 13 October 2009

House Price Rises Underpinned by Lack of Supply

Further evidence of the potential fragility of the recent rise in house prices was provided by the latest RICS survey, confirming what we've heard for some time now, that house prices are being underpinned by a shortage of houses for sale.

For the first time since May 2007, more surveyors reported house price rises than falls. However, this is not the case across the whole country. Prices are rising in London and the South East, but falls are reported in Wales, Yorkshire and Humber.

The fragile support for house prices is evident in figures that show new buyer enquiries rose in September but new instructions from sellers fell from August's figures, generally a quiet time in the housing market.

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