UK House Prices Could Rise 6% For Five Years

U.K. house sales hit a six-year high in March, a survey revealed on Thursday, but a supply shortage continues to send prices soaring.

The Royal Institution of Chartered Surveyors (RICS) study forecast property prices in Britain would rise 6 percent yearly over the next five years, fueling fears the market is in bubble territory.

RICS’ survey showed that the average number of houses sold per surveyor in March rose to 22.7, the highest since February 2008.

Simon Rubinsohn, chief economist at RICS, was confident the property bull run had further to go.

“I think we are still a third down on the high watermark in terms of activity, and in fact, in many parts of the country, we’re really only just beginning to see a real emergence from what was quite a stagnant property market for quite some time,” he told CNBC in a phone interview.

“So I think…in terms of activity levels, (we have) quite a way to run.”

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza