Breaking News
Ad-Free Version. Upgrade your experience. Save up to 40% More details

UK house price gauge hits highest since 1988 - RICS

EconomyMay 13, 2021 03:15AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters. FILE PHOTO: Construction workers build a new house in Aylesbury, Britain August 6, 2020. REUTERS/Matthew Childs

(This May 12th story corrects to show index at highest since 1988, not 1970s, in headline, paragraphs 1-2)

LONDON (Reuters) - A measure of British house price inflation hit its highest level since the late 1980s in April as buyers raced to take advantage of an extended tax break just as sellers retreated from the market, a survey showed on Thursday.

The Royal Institution of Chartered Surveyors' gauge of house prices - which reflects the proportion of surveyors reporting price increases - jumped in April to +75, its highest level since 1988, from +62 in March.

Other indicators have also shown that a surge in the housing market was given fresh momentum by finance minister Rishi Sunak's announcement on March 3 that he was extending temporarily a cut to a tax on property purchases.

Sunak also announced a new mortgage guarantee scheme for first-time buyers who cannot afford large deposits.

RICS said new buyer demand was positive across every region for the first time this year. But new instructions from owners looking to sell slumped to -4 from +21 in March.

"Housing supply, or more pertinently, the shortfall in supply relative to demand is the key theme coming through loud and clear," Simon Rubinsohn, RICS's chief economist, said.

"While it may be simplistic to assume that higher numbers alone can redress the affordability issue, particularly in a low interest rate environment, an uplift in delivery does have a role to play."

Prime Minister Boris Johnson's government said on Tuesday it would create a simpler and faster planning system to speed up the construction of new homes, a frequent promise of British governments.

Sunak cut the stamp duty purchase tax last year as part of his emergency measures to help the economy through its coronavirus slump.

Demand for bigger homes after the experience of lockdown has also driven a surge in demand since last spring, a phenomenon seen in other countries too.

RICS said there were signs that the renewed rush to buy homes would ease off when the tax break is scaled back in June and ends completely in September.

Only a net 12% of respondents in its survey thought the sales volumes would rise over the next year.

UK house price gauge hits highest since 1988 - RICS

Related Articles

U.S. new home sales drop to 14-month low in June
U.S. new home sales drop to 14-month low in June By Reuters - Jul 26, 2021 2

By Lucia Mutikani WASHINGTON (Reuters) - Sales of new U.S. single-family homes tumbled to a 14-month low in June and sales in the prior month were weaker than initially estimated,...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email