UK RICS house price balance rose from 22% to 33%

The RICS house price balance rose from 22% to 33%, much stronger than the 22% expected by consensus. 

Given that house prices rose over the month of April when UK election uncertainty was at its maximum, the RICS reading would hint that house price inflation is set to rise further now that the elections are over.

When asked about the housing market in yesterday's QIR, BoE Carney commented that the lower GDP growth profile over the forecast horizon reflects lower housing activity, and that the Bank 'will not swing monetary policy that targets inflation to one that targets house prices'.