UK house prices rise for fifth straight month

Estate agents are predicting a strong rally in the British housing market after Easter as house prices rose for the fifth month…

Estate agents are predicting a strong rally in the British housing market after Easter as house prices rose for the fifth month in a row during March.

The Royal Institution of Chartered Surveyors said confidence in the market among its members had reached a two-year high.

It said the number of potential buyers entering the market had risen for a record-breaking 10th month in a row as low interest rates continued to underpin demand.

At the same time prices were continuing to rise, although the rate of growth had slowed slightly.

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Overall 13 per cent more chartered surveyors in England, Wales and Scotland reported seeing price increases during March than those who saw falls, compared with 16 per cent in February.

The group said surveyors' confidence was based on the fact that people often looked to buy a house at this time of year, while the economy generally remained good.

The level of completed sales are currently 16 per cent higher than they were this time last year, while new properties are coming on to the market at their fastest rate since June last year.

Despite this, chartered surveyor estate agents had 6 per cent fewer properties on their books during March than in the same month of 2005.

Price rises are strongest in London, the south west and Scotland but remain weaker in the north and the midlands, where people are less certain over immediate employment.