In June of 2013. the real estate market in the UK saw the strongest growth since 2010.

Royal Institute of chartered surveyors has published a new report on the housing market in the UK. According to the report, rising prices and increased demand indicate the recovery of the market.

Approximately 21% more respondents appraisers said that property prices in the UK rose in June, and June was the strongest month for real estate market since January 2010.

The market Outlook is also strong – more than 23 % of the respondents stated that prices over the next three months will rise rather than fall.

According to RICS, the monthly price rise was mainly due to the increase in the number of potential buyers returning to the market. In June, 38% of chartered surveyors stated that the increased number of new inquiries from buyers.

Potential buyers demand is growing from month to month since January and is currently showing the fastest growth since August 2009. This is a clear sign indicating improved market confidence, which arose, no doubt, including with a dedicated UK government support Fund lending.

Based on these positive attitudes, a higher percentage – 45% of chartered surveyors now expect that the price of apartments and houses in the UK will grow in the next three months. In may these respondents was just 36%. This is the most positive change in mood, since April 1999, when the RICS index.

Despite the growing appetite for purchases of real estate, the rental market of residential property in the UK continues to play a crucial role in providing people with housing. The demand for rental residential property increased in June compared to may.

It is important not to overstate the revival of the market and understand what level of activity is still very modest but the various initiatives designed to encourage the infusion of funds into the market are bearing fruit.

Despite the increase of interest of buyers of residential properties in the UK, still the strongest market demand will come from tenants that will spur an increase in rent. Therefore, it is necessary to continue to focus on supporting the construction of new homes.

Current lending conditions offered by banks, created the wonderful prospects for the market in the second half of 2013.

It is very important that a surge in effective demand for housing was met by appropriate investments in the construction of new homes. Those 3.5 billion of loans that were issued to new buyers, should be an incentive for the construction of new homes, the annual demand for which is estimated at approximately 240000. Therefore, the real volume of new investment should come from institutional investors. If the funds invested in the residential construction industry will meet the effective demand, it will allow to stabilize prices and prevent market bubble.

® Ellis Morgan 17.07.2013.