House prices rose for the thirteenth consecutive month in November. However, the pace of increase has stabilised, said the said the Royal Institution of Chartered Surveyors today. 

It is the first time since March that their survey has not indicated acceleration in price growth. Price rises are being driven by tight market conditions with limited property on the market against a background of robust demand, said the surveyors.

In November, 47.4% more chartered surveyors reported a rise than a fall in house prices, down from 47.7% in October, but still more than double the long run average of 21%.

The market absorbed last month’s interest rate rise, said RICS, sustained by the turbo-charged financial services sector, boosting the markets of London and the South East.

Northern Ireland and Scotland continue to experience buoyant conditions but price rises have slowed. The laggard markets of the Midlands and the North of England rose at a firm pace but there is little indication that either of these regions are experiencing a property boom.

New buyer enquiries stagnated in November but still remain strong throughout the country with demand boosted by rising incomes, a strong economic outlook and a healthy employment market.

Completed property sales rose by 20% year on year, the biggest gain since March 2002 while stocks of unsold property remain at the lowest level since August 2004. The ratio of completed sales compared to the stock of available property rose to 42.5% from 41.0%. This is the highest ratio in two years and a strong indicator of a still buoyant market.

RICS spokesman, Jeremy Leaf, said: “The Bank of England’s rate rises have failed to dent the housing market’s armour. Strong employment conditions and a robust economy continue to shield the market from any dip.”

“While concerns remain about high consumer debt levels, households still view their finances as strong. A further interest rate rise in the new year may have a mid-term effect. We expect house prices to rise by 7% following a 9% jump in 2006.”