The Royal Institution of Chartered Surveyors' (RICS) has said that its seasonally adjusted house price balance for the UK housing market rose to -19 in August from-23 in July.
The house price balance rose in the month of August as most people believed that the housing prices remained stable while some reported a fall in housing prices. Experts believe that the government programs have appeared to have worked and as a result more people are expected to buy homes in the coming year.
RICS said, "These series together point to a broadly flat trend in prices at a national level. However, this inevitably masks significant regional variations. The only part of the country where the RICS net price balance is in positive territory is London, and this has pretty much been the case since the beginning of last year."
The government recently launched "funding for lending scheme" of £80 billion, under which, cheap credit is offered to banks so that it can be lent to people looking to buy homes. The scheme is aimed at lending to the housing market and businesses. The government has also launched a NewBuy scheme for people looking to buy a house for the first time. The scheme provides 95 per cent loan-to-value mortgages.
The UK housing market is facing a difficult economic situation due to the slowdown in the economy as well as the ongoing sovereign debt crisis in the Eurozone. The officials of the Bank of England are now trying to review the impact of measures to boost credit in the UK.
The prices of houses in the UK had fallen by about a fifth at the start of the global financial crisis and the prices have since recovered by half. The prices have remained stable at that level since the last two years.
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