House Price Crash ‘Unlikely’

Tuesday, May 18 2004

Despite ongoing debate about a potential housing market crash, surveyors are confident that prices will continue to rise in the months ahead, says the latest report from the Royal Institution of Chartered Surveyors.

The study has found that surveyors think interest rate rises and speculation about a crash have failed to either discourage buyers from looking for the next home, or encourage others to put theirs on the market.

This, RICS says, is creating a ‘tight’ market situation, and it is these conditions which will create an upward pressure on prices in the months to come.

Also, the actual number of properties coming onto the market has showed little change for a second consecutive month, says the report.

Confidence seems strongest amongst surveyors in London and the South East as the market there is widely expected to pick up, having been sluggish for the past few months, particularly in comparison to the North and North West which have been showing considerable growth in the past year.

RICS Housing Spokesman Jeremy Leaf said: ‘The expected springtime flood of properties into the market has just not materialised. Many people are realising that the current number of houses for sale is as good as it gets now, and are looking to buy quickly rather than risk paying more for a similar property over the coming months.’

‘In this environment it is important that both sellers and buyers are not taken for a ride. Sellers may find their properties are overvalued and sit on the market for a while, whilst some buyers are paying above the odds in order to secure a property.

We need to caution against the market overheating again,’ he continued.