UK house prices rose at their fastest pace in 13 months in the three months to December, according to a report from the Royal Institution of Chartered Surveyors (RICS). The report found that found 41pc more surveyors reported price rises than falls, up from 33pc in the month before and the highest level since November 2002.
The findings suggest that last year's Bank of England interest rate hike has had little impact on prices. The BoE raised rates off a 48-year low of 3.5pc in November because it was worried house prices were rising too sharply. But RICS said that while the rate hike had cut buyer interest in property, a shortage of houses for sale meant that it had a minimal effect on house prices. And it remained confident on the outlook even though most economists are expecting further interest rate hikes in the coming months, predicting that house prices would rise by 6pc this year.
The BoE now expects a gentle slowdown over the next two years though some commentators are worried about a crash such as the one in the late 1980s. //www.fxcentre.com