The UK property market is heading for new highs as annual house price inflation hit its highest pace since October 2002, suggests lthe atest survey by the Royal Institute of Chartered Surveyors.
RICS research also reveals 45% more surveyors experienced a rise in business in March than a fall, compared with only 39% in February.
Lack of housing in the UK and low unemployment figures have boosted prices, which have been left more or less unaffected by recent Bank of England interest rate rises, says RICS housing spokesman Ian Perry.
"The shortage of housing in the UK is continuing to underwrite price growth. Big rises and the lacklustre performance of the stock market in recent years has also led to residential property to be perceived as the golden asset class," says Perry.
According to the survey, Wales saw the biggest house price increase last month as 71% surveyors reporting price rises. Yorkshire and the North West are also gaining ground.
And in London, annual price inflation is currently at its strongest since June 2002, RICS suggests.
While this may come as good news for current home owners, Perry says it will further increase the hardship for first-time buyers and those locked out of the housing market.
That said, the government is unlikely to try to change this recent trend, he deems.
"An interesting question to ask is how any present or future UK government will find the political will to build the number of houses required to halt this trend, especially with the financial interests of so many voters at stake," adds Perry.IFAonline
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