"It's not surprising that more and more people are looking to sell their homes. Buyers are out there and prices are on the up so if you're looking to move it's a good time to do so."
- Peter Bolton King, the Rics global residential director
In August British government was blamed for creating housing bubble after a series of reports on Britain's housing market that showed it represents almost 60% of country's net non-financial wealth. However, the U.K. home prices jumped further in August, supported by the improved economic outlook. The Royal Institution of Chartered Surveyors said the index of home prices rose to 40 from a revised 37 a month earlier, hitting the highest since November 2006. Meanwhile, a proxy measure of demand hit a fresh high, while the outlook for prices ticked up to the highest since 2002. While latest reports are reflecting broaden strengthening in the property market and the positive effect of credit-easing initiatives from the government, concerns over growing bubble are rising. On Monday Exchequer George Osborne defended his housing property, saying it is sensible and still vital for further improvement. Earlier the report from the ONS showed that national balance sheet, which is considered as a measure of the total net wealth, stood at 7.3 billion pounds at the end of last year. Moreover, housing was the most valuable, representing nearly 60% of total non-financial assets, and it was at the end of 2012, just before prices began to soar even more rapidly, hitting all-time highs. Another survey showed the majority of respondents are expecting home prices to rise 2.2% over the next 12 months and accelerate to 4.4% in each of the next five years.
© Dukascopy Bank SA