UK home prices surge over seller scarcity

House price inflation in the United Kingdom surged in October due to a scarcity of sellers, based on a survey released on Thursday. The Royal Institution of Chartered Surveyors (RICS) said more price hikes were expected.

The RICS revealed that a net balance 70% of its members reported a hike in house prices in October. The latest survey exceeded a revised reading in September and economists’ forecast of 69% and 65%, respectively. 

Other surveys showed continuous home price increases since July. This came after the expiration of a tax exemption on house purchases in Wales and its reduction in England and Northern Ireland. 

RICS Chief Economist Simon Rubinsohn said higher interest rate expectations from the Bank of England (BOE) were a sideshow to the supply shortage of homes in the market.

The BOE maintained its interest rate last week, but top officials said borrowing prices are expected to rise soon.