House prices were driven up again in April due to a sharp drop in new properties coming onto the market.
General Election uncertainty saw new instructions fall and house prices rise in all parts of the UK, according to the April RICS UK Residential Market Survey, published today. April saw the third consecutive monthly decline in supply with new instructions falling at their fastest rate since May 2009.
While 33% more surveyors saw prices rise in April, the highest reading since last summer, new instructions slipped to a net balance of -21%, the eighth consecutive drop in the last nine months.
Respondents’ reported an increase in prices in every area of the UK for the first time since August last year. The RICS said that 72% of members expect prices to rise over the next 12 months.
Lending to borrowers with small deposits represented 16.3% of house purchase approvals in April, up from 14.9% a year ago. The number of house purchase approvals fell year-on-year, suggesting that higher LTV lending is helping to support total mortgage approval figures.
The flow of second hand stock onto the market dropped in most parts of the country.
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