House price growth in England and Wales remained steady in the three months to November as supply shrank to its lowest since June 2002, according to Royal Institution of Chartered Surveyors (RICS). For the three months to November, 35pc more surveyors reported a rise in prices than a fall on a seasonally adjusted basis, the same as the revised figure for October. Expectations for prices in the next three months were also steady, according to the RICs survey. Twenty three per cent more surveyors expect sales activity to rise than fall, the same figure as the previous month.
The Bank of England raised interest rates by 25 basis points to 3.75pc last month in a bid to cool demand in the property market. "There is little to suggest that homeowners have been panicked into selling their properties despite speculation of further interest rate rises in 2004," RICS said. Meanwhile, housing supply in England and Wales in the three months to November slumped to its lowest since June 2002. The stock of unsold properties on estate agents' books has fallen by 12pc since August.//www.fxcentre.com