Royal Institution Of Chartered Surveyors (RICS) Housing Market Survey

Summary

The Royal Institution of Chartered Surveyors (RICS) is the professional regulatory body for chartered surveyors, operating in 146 countries with over 40,000 members. Each month the Royal Institution of Chartered Surveyors (RICS) publishes a survey of chartered surveyors about house prices and housing stock across England and Wales.

Data

Around 285 chartered surveyors take part in this survey, which asks whether prices have risen, fallen or not changed over the previous three months. Other information given in the survey is the number of homes on chartered surveyors' books and the number of completed sales.

Method

An adjusted balance figure of the percentage of chartered surveyors who think there has been a rise or fall, calculated by subtracting those reporting a fall from those reporting a rise is then given. Figures are also available in a seasonally adjusted format.

Disadvantages

• This only gives a figure on the number of chartered surveyors who think house prices are moving up, down or staying put. It doesn't give an indicator of how much house prices are worth or by how much prices are falling or rising and therefore only shows part of the picture of the housing market.
• It is based on chartered surveyors' opinion, which is difficult to verify, rather than firm facts about prices

Advantages

• The RICS Housing Market Survey gives a valuable indication of how the house price market is changing by asking questions directly to chartered surveyors, a key profession in the property market
• By asking about housing stock and completed deals the RICS Housing Market Survey offers an insight into the number of properties coming onto the market and how quickly they are selling
• One of the most timely forward indicators

Verdict

These are some of the figures most respected by leading economists and are frequently cited as a reference by the Bank Of England's Monetary Committee, which sets interest rates.