UK house prices increase rapidly

13 Feb 2020

Surveyors and estate agents highlighted that there was an increase in British house prices, hinting that buyers and sellers are optimistic about property. 

The rise in prices is the first to occur in around one year and a half, proving that the housing market performed very well since the general election in mid-December.

Additionally, the prices increased at the fastest pace in almost three years, highlighting a bounce in consumer sentiment.

The Royal Institution of Chartered Surveyors' (RICS) monthly house price index rebounded since December, when it fell by two points. Last month, the index rose by 17 points, exceeding Reuters expectations. 

The election helped to calm the Brexit situation and clear any concerns that buyers and sellers had, allowing for the “Boris bounce” to happen. 

Chief economist at RICS, Simon Rubinsohn said, “It remains to be seen how long this newfound market momentum is sustained for and political uncertainty may resurface towards the end of the year. But at this point in time contributors are optimistic.” 

Moreover, there was an increase in the number of agreed sales, with most agreements made in the West Midlands. RICS expects sales and prices to continue to go up throughout the year. 

Annual house prices were up by 4.1% in January. 

The unclarity of Brexit was influencing property sales in London and the southeast England.

The UK and the EU will commence negotiation talks early next month in order to try to reach a trade deal. Brexit was completed at the end of last month.