Icy weather hits housing market

House prices climbed in January but both buyer and seller interest was hit as a result of the snowy weather, according to the Royal Institution of Chartered Surveyors (RICS).

More surveyors reported a rise in prices last month compared with December last year, according to the RICS UK Housing Market Survey.

However, the net balance of surveyors reported that buyer enquiries fell for the first time in 14 months while new instructions dropped for the first time in seven months.

It concludes the bad weather "clearly" had a negative affect on business levels - with newly-agreed sales falling for the first time in 10 months - and therefore expects a return to normal levels in February.

"The cold snap in January clearly has a huge impact upon both supply and demand in the housing market with activity coming to a halt amidst the seasonal chaos," RICS spokesman Ian Perry says.

"Activity and interest is likely to pick up in the coming months as the market experiences a spring bounce.

"House prices are likely to rise in the short term but if more supply continues to come onto the market, it is possible that the market will run out of steam in the latter part of the year."