UK house prices jump as buyers seek gardens after lockdown: RICS

LONDON (Reuters) – The post-lockdown surge in Britain’s housing market intensified in August, and costs hit a four-year excessive, as consumers sought properties with gardens, in response to a survey that additionally despatched a warning sign that the restoration may run out of steam.

FILE PHOTO: The Knightsbridge home which has been bought by Polish billionaire Dominika Kulczyk for 57.5 million British kilos, stands in London, Britain February 20, 2020. REUTERS/Simon Dawson

The month-to-month gauge of home costs from the Royal Establishment of Chartered Surveyors (RICS) shot as much as +44 in August from +13 in July, hitting its degree since February 2016. A Reuters ballot of economists had pointed to a studying of +25.

Costs rose throughout the nation apart from London the place they’ve remained roughly flat over the previous two months.

The survey chimed with different indicators {that a} mini-boom is underway within the housing market – one of many few elements of the financial system to have bounced again from the pandemic – helped partially by an emergency tax lower for consumers.

Demand accelerated sharply, helped by a shift in direction of properties with gardens after the COVID-19 lockdown, RICS mentioned.

Some 83% mentioned they anticipated to see larger demand for properties with gardens and most predicted diminished demand for properties in extremely city areas or tower blocks.

“The newest RICS survey supplies agency proof of a powerful uplift in exercise within the housing market which ought to assist help the broader financial system achieve traction over the approaching months,” RICS chief economist Simon Rubinsohn mentioned.

Nonetheless, there have been some ominous indicators.

The survey’s gauge of gross sales for the following 12 months deteriorated additional in August, dented by worries concerning the financial system.

Final week Financial institution of England Governor Andrew Bailey mentioned it was too quickly to say if the rebound within the housing market was something greater than a launch of pent-up demand following lockdown, helped by the short-term lower to property taxes.

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