(Repeast to additional clients without changes)
LONDON, April 10 LONDON, April 10 (Reuters) -
British house prices unexpectedly picked up speed in March and
sales reached a six-year high, a survey showed on Thursday,
suggesting the market is still firmly on the rise, after recent
releases indicated a slight loss in momentum.
The Royal Institution of Chartered Surveyors'
(RICS)seasonally adjusted house price balance rose last month to
+57 from an upwardly revised +47 in February.
The rise took the balance near to November's +58, which was
the highest since June 2002. The March reading beat all
forecasts in a Reuters poll of economists, who on average
predicted a balance of +44.
House prices rose in every area of Britain in March, and by
the most in London and the South East.
This was accompanied by rising activity, with RICS's members
saying they were at their busiest since February 2008.
The survey contrasted with one by mortgage lender Nationwide
last week, which showed house price rises slowed in March for a
third straight month, and other recent data.
Britain's housing market, buoyed by record low interest
rates and government-sponsored schemes, has been a main driver
of the country's consumer-led and surprisingly fast economic
As demand outstrips supply, contributors to the RICS' survey
expected prices nationally to rise by 5.9 percent a year over
the next five years, nearly double the 3.1 percent forecast this
time last year.
Bank of England officials have played down suggestions that
the housing market is overheating but have said they are
vigilant about momentum in the market. The Bank refocused its
Funding for Lending Scheme away from mortgage lending and
dedicated it exclusively to business lending at the start of
But finance minister George Osborne said last month that the
government will extend its Help to Buy scheme of providing
equity loans to buyers of newly built homes to the end of the
decade, as the government trys to tackle shortage in supply.
(Reporting by Ana Nicolaci da Costa; Editing by Susan Fenton)
(Reporting by Jeremy Gaunt)