House prices in the UK are still on the rise, according to a new report, which says that a combination of strong positive sentiment from buyers and a lack of people selling homes, will see final sale values hit a new high by the end of 2015.
The August 2015 housing market survey from the Royal Institute of Chartered Surveyors (Rics) shows that instructions from sellers in August were far lower than the rising demand from buyers, which has increased competition between the latter for each purchase, pushing prices ever higher.
By the end of the year, the report predicts, we will have seen house prices rise by a total of six per cent across the course of 2015. Rics price indicator climbed to a 15-month high in August, which suggest prices are rising faster than they have since the early months of 2014.
In fact, Rics predictions are now double what they were at the start of the year, when the organisation said that prices were likely to climb by three per cent overall in 2015. This has been fuelled in particular by the fact that the number of buyer instructions has increased by some 22 per cent in the space of the last year.
"While the UK housing market has seen some substantial volatility in demand over the last 18 months, the most consistent feature has been a distinct shortage of new instructions,' said RICS economist Michael Hanley.
"With respondents reporting another fall in appraisals during August, and looking at general market conditions, we have no reason to believe this will change in the near term. Therefore, despite the fact that demand has been picking up in recent months, we have lowered our forecast for transactions for 2015 from 1.25 million to 1.2 million. Alongside this, we have revised our expectations for price gains this year up to," he added.