25 September 2001, 13:12  [FWN] UK housing market remains strong in the 3 mths to August

LONDON (FWN) - The strength of the UK housing market remained very much intact in the three months to August despite predictions that it was set for a decline, according to the latest survey on the housing market from the Royal Institute of Chartered Surveyors. A net balance of 52 pct of chartered surveyor estate agents reported price rises in the three months to August period. The current rate of growth remains more than twice the long term average of 23 pct. The number of completed sales reached its second highest level since 1993 as demand continued to outstrip supply. While the average number of houses on surveyors' books fell to 71 from 72 in the three months to August,sales was unchanged at 33. Autumn is a traditionally strong period for house sales but many surveyors are confident that the market will slow down very gradually until the end of the year, the survey said. In terms of regions, the fastest rises were seen in East Anglia, the North West and the North. In London, the pace of rises moderated slightly. However, the survey was completed before the September 11 New York tragedy. RICS national housing spokesman Ian Perry said the attack on the US and the international uncertainty will undoubtedly affect the UK economy. "The stabilisation of the market in the summer and the forecast slowdown are a welcome pause after the rapid rises in the first half of the year. The cut in interest rates will help support the market, but the international situation will not help, particularly given the signs of a slowing economy," he added.

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