Signs of caution in housing market, surveyors say

Houses House prices have been rising sharply in some areas of the UK

Surveyors have reduced their expectations for house price growth in the UK, despite a continued shortage of homes for sale.

Property prices are expected to grow by 5% a year over the next five years, according to the Royal Institution of Chartered Surveyors (Rics).

This prediction had edged down in recent months, Rics said.

Price rise expectations in London have dropped from an estimate of 9% a year in March to just under 5% now.

"What we are really seeing is some of the very strong upward momentum starting to come off the housing market, as a lack of supply, higher prices, more prudent lending measures and some of the talk from the Bank of England are creating a level of caution among sellers and buyers," said Simon Rubinsohn, chief economist at Rics.

The Rics survey is one of a number of different surveys that are published about the UK housing market.

Earlier this month, the Nationwide Building Society said that there had been signs that activity in the UK housing market was starting to "moderate".

However, prices have risen in most parts of the country in recent months, with London showing double-digit annual growth in property prices.

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