By TraderVox.com
Tradervox.com (Dublin) – According to a Royal Institution of Chartered Surveyors report, the UK house prices improved to the best in more than two years in October. The housing index reached 7 percent in October from negative 14 registered in September. In their report emailed today, the RICS said that the measures of enquiries from new buyers increased from 5 to 18, making it the fastest pace of improvements since December 2009.
The report has signaled stabilization in the housing sector after the economy barely escaped a recession in the last quarter. The report was released a day before the Bank of England releases its inflation and growth prospects after halting the 375 billion-pound asset purchases program.
According to Ian Perry, the RICS spokesman, the number of potential buyers going out and viewing property grew last month. Perry’s statement also noted that the overall activity remains low in most parts of country and the availability of affordable mortgage eludes most first-time buyers. The reported noted that the gauge of three-month price expectations increased to negative 3 from negative 9 while the newly agreed sales rose from zero to 20, the highest since December 2009.
The pound has remained low prior to the BOE release of its latest growth and inflation projections. The market is expecting the report to show room for more easing to boost growth in the country which has had some growth in the third quarter. According to Ian Stannard, the head of European Currency Strategy in London at Morgan Stanley, the pound remains under pressure as data is likely to suggest there are challenges in the future in the UK economy. He also noted that the BOE started talking about the negative impacts of a strong pound, hence there might be measures put in place to curb this strength. He projected that the pound may continue to decline against the dollar.
The sterling dropped by 0.2 percent against the euro to 80.11 at the close of trading in London. The UK currency dropped to 0.2 percent to $1.5869 against the dollar.
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