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Property supply 'not keeping pace with demand'

Property supply 'not keeping pace with demand'
UK property prices are rising because the increase in demand is faster than that of supply, it has been stated.

Royal Institution of Chartered Surveyors (Rics) chief economist Simon Rubinsohn said: "One of the factors that is holding back supply is uncertainty about the ability to sell a property in a troubled market, pricing and the time that one has to leave the property on the market."

One factor that may come more into play now is an increase in the construction of new homes, Mr Rubinsohn predicted.

Another factor he noted was that more people are looking to sell homes at the end of a tenancy, which would be consistent with a fall in the number of 'reluctant landlords' who only rented out homes because they were unable to sell them.

The Rics survey found that a positive balance of 35 per cent of surveyors reported house prices to be increasing rather than dropping in November, up from 34 per cent in October.

It was the fourth successive month that the survey had recorded a positive balance for prices.