House prices have risen for the first time in over a year during the three months to November reports the Royal Institution of Chartered Surveyors.

RICS said that the three months to November saw 4pc more chartered surveyors reporting rises in prices rather than falls. This is a marked improvement when compared to October?s figures, when a further 8pc of surveyors reported a fall.

Looks like the end of the slowdown
RICS also said that buyer enquiries have consistently risen over the past six months and the market slowdown appears to have come to an end.

A factor of low interest rates and a healthy job climate have helped avoid the housing crashes that have followed previous slowdowns in the 1970s and 1990s.

Surveyors are seeing confidence at its highest in 18 months and property sales for November have increased. The market appears to be going the way of the seller, with level of property coming onto the market continues it’s fall.

Rate Rises
For 2006, RICS expects a rise in UK house prices of 4% and a further 4% per cent in 2007. This is a good indicator of the future market as RICS correctly predicted an upturn of 3% for 2005.

The modest pick-up in house price rises for next year reflects the impact of the August interest rate cut, as well as a lift from a further expected 0.25% interest rate cut in the first half of 2006. However, if wage data due out early next year is particularly weak, the Bank of England will be dissuaded from further cuts.

With the housing market showing signs of a recovery from a marked drop in activity in the latter half of 2004, purchases are also expected to rise firmly in 2006, having fallen for two successive years. RICS expects mortgage approvals to rise from a five year low of 1.127 million in 2005 to reach 1.336 million in 2006.

RICS spokesperson Ian Perry said: “All the numbers point to renewed price rises. There is a universal expectation from agents that interest rates are heading down again in the new year, which is providing the market with confidence.

The biggest increases have been seen in London where city bonuses are expected to help the market along in the coming months.”