House prices to ”rise faster than wages”, according to British property surveyors
British property surveyors have stated that the prices of houses are set to rise faster than wages, Sky News reports.
The experts from the Royal Institution of Chartered Surveyors (RICS) stated that most of them expect the prices of homes across Britain to rise faster than the wages, by a percentage of around 3,5% over the next five year.
“Perhaps the most ominous signal emanating from the data… is that contributors still expect house prices to increase at a faster pace than wages over the medium term despite the difficulty many first time buyers are clearly having in taking their first steps onto the property ladder,” RICS chief economist Simon Rubinsohn said.
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This all happens despite the fact that the real estate market has become more subdued recently, with fewer houses being put up for sale. Moreover, RICS said a “sheer lack of supply continues to support prices for the time being”.
At the beginning of the month, Halifax stated that house prices over the last three months had experienced ”virtually no change”, while rival lender Nationwide showed figures demonstrating that the prices of homes had fallen for three consecutive months for the first time since 2009.
Another sign that the market is slowing is that the Bank of England showed mortgage approvals for home buyers falling to a seven-month low in April.
According to the National Association of Estate Agents, buyers and sellers were taking a “wait and see” approach.
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