Property transactions 'will increase next year'

22 December 2009

Written by Jeni Browne

Those looking to invest in buy to let property may see competition from buyers as transactions are expected to rise.

Predictions from the Royal Institution of Chartered Surveyors (Rics) stated that the end of 2010 will see a rise in house prices of one or two per cent higher than this year.

Currently there are 55,000 to 60,000 monthly transactions, but Rics claimed this number will rise to 70,000.

Demand will continue to outweigh supply, which will force a rise in house prices.

Surveyors have noted that stocks are close to historical lows, it stated.

Lenders will continue to be cautious throughout 2010 and the uncertain economic climate will prove challenging for the market, according to who the institution.

But chief economist of Rics Simon Rubhinson said: "Transactions levels are likely to increase, fulfilling the Christmas wish list of many agents throughout the country."

However, first-time buyers are likely to struggle getting finance, he explained.

Following a report released by the institution on December 15th, Mr Rubhinson said that the speed at which market deals are going through is increasing as well as experiencing an improvement in pricing.

This could lead to an increase in the amount of new constructions available, he claimed.

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