House price growth hits two year high says Rics

House price growth hit a two year high during May the Royal Institute of Chartered Surveyors (Rics) has claimed.

Institute figures show that 20 per cent more surveyors reported rising prices over the month, compared to 15 per cent in April.

Stock market jitters and rumours of an imminent rate rise do not appear to have dimmed the nations renewed enthusiasm for bricks and mortar, said Rics.

“The strength of the housing market suggests consumer confidence in the UK economy,” said RICS spokesman Jeremy Leaf.

“Buyers are trading up the housing ladder and have blown dust from their wallets as interest rates remain stable.

“However, the upturn in the number of sellers will keep a lid on house price rises going into the second half of 2006.”

Buyer enquiries were up for the 12th consecutive month and despite rising sales, the pool of available property on the market increased from 71.7 per cent in February to 72.4 per cent.

Any increases in the base rate of interest could also put a dampener on the market as competition and the cost of borrowing have kept the best mortgage rates low.

© Adfero Ltd

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