RICS Property Market Report reflects on increasing activity in the Residential Market.London residential and prime commercial property markets continue to push ahead in January 2010, as it did at the end of 2009. The RICS February 2010 Property Market Chartbook describes national figures for November and December averaging 6% above levels at the end of 2008, with indicators of momentum in the market suggesting prices are rising 11.6% on a 3 monthly annualised rate.  New buyer enquiries increased again in December as did supply of property, although this still lags behind. Add to this that November saw the highest level of mortgage approvals since February 2008, and we can start to see why there is confidence in the residential property market again. The RICS conclude that valuation metrics, such as the ratio of house prices to earnings and average mortgage payments as a percentage of take home pay, demonstrate the strains that persist within the housing market. Although the latter ratio indicates that financing a mortgage loan is very affordable (for the average borrower) in the current environment, a crude comparison of house prices to earnings suggests that the market is still quite expensive [nationally]. More- over, it is inconceivable that interest rates will remain at current emergency levels if the economic recovery begins to gain some traction. So make sure you take good financial advice as to the most suitable mortgage when you start your property search. Click here to view The RICS February 2010 Property Market Chartbook in full. |
