The Royal Institute of Chartered Surveyors (RICS) have commented that not only have they witnessed the highest demand for flats and houses in the UK for three and a half years, they are also seeing evidence of property prices rising for the first time since 2010.
These occurrences are not in isolation; higher demand, as with any commodity, driving the price higher.
A key factor in the recent demand increases is the governments Help to Buy scheme which has helped increase the number of first time buyers, generating an increase of 20% between February and March this year*.
An increase of lending to all types of property buyers has been noted, and with the second stage of the Help to buy Scheme where the government will guarantee mortgage payments beginning in January 2014, it is likely this increase, and rising demand on property stock will continue.
RICS have warned that this boom in demand could cause a rapid increase of house prices, therefore there must be an increase in the number of new homes built, to satisfy demand and prevent this demand boom from creating unmanageable house price inflation which could effectively knock out the advantages of the Help to Buy scheme itself.