UK
House Prices Situation: Strong
UK
House Prices Forecast: Will stay high
The
housing market is continuing to look strong, according
to a raft of reports out this week. The Royal Institute
of Chartered Surveyors (RCIS) reported that their sales
to stock ratio, an alternative measure of housing market
strength, rose from +34.9 in the three months to August
to +45.1 in September - the highest level since October
2002.
In
a separate report, the National Association of Estate
Agents (NAEA) reported a drop in the average
UK house price of 3.42% from August to September.
Despite this, they believe the market is strong, with
the ratio of buyers to sellers remaining stable, and
demand outstripping supply.
In
a final twist, the Stroud & Swindon Building Society
released research showing that if the present rate of
house price inflation continues, the average homeowner
will be liable for inheritance tax (IHT) in just eight
years. The IHT threshold has increased by an average
of 3% per annum over the last decade, in stark contrast
to house price inflation, which has averaged 9.5%.
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