Mortgage News
UK recovery faster than rest of Europe
The Royal Institution of Chartered Surveyors (RICS) has revealed that the UK housing market is improving at a faster rate than most European countries.
In its 2010 European Housing Review, the trade body said the UK has experienced sharp house price growth since prices bottomed in mid-2008 whereas other European countries are still facing market problems.
However, the report admitted that the size of the UK recovery was more pronounced due to the sheer scale of the market collapse between autumn 2007 and spring 2009.
Simon Rubinsohn, chief economist at RICS, said he expected the recovery in house prices to slow in 2010.
He explained: “Activity will be constrained this year, but it seems unlikely that prices will drop as far as they did in 2008. We think buyer enquiries will pick up soon which will mean mortgage activity and house prices could increase slightly.”
David Sheppard, managing director of Perception Finance, agreed with the review, adding that supply and demand issues were stifling the recovery.
Episode 2: Affordability : Powered by Partnership podcast from Newcastle for Intermediaries
Sponsored by Newcastle for Intermediaries
He said: “The increases last year were mainly fed by a lack of supply, but this year, there are more properties for sale so prices will remain static.”