31 Mar

Property price increase 'is no surprise'

Property price increase 'is no surprise'

Figures showing a rise in UK house prices for March should not come as a surprise, according to one expert.

Simon Rubinsohn, chief economist at the Royal Institution of Chartered Surveyors (RICS), noted that an increase is inevitable since supply is not yet matching demand.

While more homes are coming onto the market, he said, they have not reached a level that would bring about declines in value.

Mr Rubinsohn was commenting on Nationwide figures that showed growth of 0.7 per cent in the cost of a typical UK home - with buyers said to be cautious due to economic and political uncertainty.

The RICS specialist suggested that the increase in the stamp duty threshold - announced in last week's Budget - is likely to "provide a further boost for demand", adding: "As a result, we continue to believe that house prices will remain firm through much of the remainder of this year."

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