House price rises in Yorkshire and the Humber are expected to hit an 11-year high as demand continues to outstrip supply.
Six out of 10 surveyors across the region predict prices will continue to rise, but fewer than a third say they have received new instructions to sell homes, according to the Royal Institution of Chartered Surveyors.
Although the lack of stock remains a big challenge, the number of property transactions is continuing to rise, with the average number of homes sold per chartered surveyor in Yorkshire and the Humber rising from 17 for the three months to November last year, to 21 this year.
Aisling Ramshaw, partner at Citu, the Yorkshire developer planning to build zero emissions homes in the Kelham district of Sheffield, said: “While demand is clearly positive and rising, with the outlook for house prices at its best since July 2002, we should be cautious that the market doesn’t get overheated.
“There is still a huge imbalance between the number of people wanting to buy and the amount of new properties coming on to the market, which is having the effect of pushing prices up. It’s debatable how sustainable this might be over the long term.
“Measures like the Government’s £1 billion loan to get stalled housing projects under way will go some way to helping ease supply, but RICS continues to believe that more must be done to stimulate house building if the UK is to see a balanced and sustainable recovery across all regions.”
RICS is calling on the Government to do more to stimulate house building in order to create a balanced and sustainable recovery across all regions, as well as ensuring that homes are affordable.