House prices 'rise more in North'

Housing market is still buoyant

House prices are continuing to rise but prices in the North of England have risen more than in the South over the three months to February, according to the Royal Institution of Chartered Surveyors (RICS).

In a survey RICS found a greater number of chartered surveyors in the North reported an increase than in the traditionally stronger markets of London and the South East.

All surveyors reported a surge in the number of inquiries from prospective buyers since January - although the figures were slightly lower than in February last year.

In rural areas the foot-and-mouth outbreak will undoubtedly have had a dampening effect on sales

Ian Perry
RICS

But the RICS is warning that the foot-and-mouth epidemic and falling stock market prices could have a negative effect on the market, but only temporarily.

In February in the North the difference between chartered surveyors reporting a price rise and those stating a fall was 32%.

This was up 8% on the previous month, suggesting a recovery from the sluggish period last year, the RICS said.

In comparison the difference in London was only 2%, the RICS poll found.

The North West led the way, with an 18% increase in the difference last month between surveyors reporting a rise and a fall.

Yorkshire and Humberside followed with 16% and surveyors in the North East reported a 10% rise.

'Upswing'

RICS national housing spokesman Ian Perry said: "The housing market is buoyant at the moment. There are signs this will continue, as there is traditionally an upswing in activity in the market at this time of year.

"But uncertainty over the economy does remain a dark cloud on the horizon.

"Last year the North of England did not have the large swings in prices seen in London and the South East, and the market has correspondingly been more settled in the northern regions.

"In rural areas the foot-and-mouth outbreak will undoubtedly have had a dampening effect on sales, but it is unlikely to have a lasting effect on property prices, even in those parts of the country affected by the disease."