Data from the Royal Institution of Chartered Surveyors suggests that over 60 per cent of its members contributing to a monthly market survey believe values of homes in London and the south east are “above fair value currently.”
Within that group, around 20 per cent believe prices are “very expensive” in the current market - a proportion that has been roughly static for six months now.
This is almost a reverse image of the picture across the UK as a whole, where 59 per cent of RICS members contributing to the survey believe their area’s prices are “around fair value at present.”
The figures come in RICS’ latest housing market report, which says the balance of members reporting house prices rising over the past quarter has increased from +13 per cent in August to +17 per cent in September - the first rise reported by RICS members since the end of last winter.
However, stock shortage is becoming critical; estate agents say inventories are close to historic lows at just over 45 properties across the UK as a whole and only 27 in London.
“The market does now appear to be settling down. Buyers do appear to be returning, albeit relatively slowly, but the big issue that continues to be highlighted by respondents is the lack of fresh stock on the market. Although this is not a new story, it is a significant one having ramifications for both prices and the level of turnover” says Simon Rubinsohn, RICS’ chief economist.
“Central London remains something of an outlier with contributors telling us this is the one part of the market where there may be further give on prices in the near term. Elsewhere the price trend still seems on the up” he suggests.