Sellers return to the housing market
Relatively low numbers of new properties coming up for sale has been holding the market back in recent months.
However, during August, 26% more chartered surveyors reported increases not decreases in new instructions (from +16% in July).
Peter Bolton King, RICS global residential director, said: “It’s not surprising that more and more people are looking to sell their homes. The buyers are out there and prices are on the up so if you’re looking to move it’s a good time to do so.”
With positivity starting to return to areas right across the UK it seems those who may have been waiting for the right time to sell are choosing now to do so.
Although supply did jump considerably last month it did not rise sharply enough to keep pace with the weight of demand.
During August the number of would-be buyers increased again as increasingly accessible finance allowed more people to enter the market.
A net balance of 66% more respondents reported growing numbers of enquiries from potential buyers last month.
As a result price increases became more widespread with 40% more surveyors reporting rises rather than falls across the UK – the highest reading since November 2006.
Across the country each region saw supply increase as the recovery continues to spread from the South East of England to other areas.
The South West and the North East in particular saw the number of new homes coming onto the market rise significantly.
A net balance of 45% more surveyors expect further price growth over the next three months as the market continues find its feet.
Bolton King said: “What we don’t wish to see, however, is prices rise to such an extent that they become unaffordable. For the market to work properly, it’s vital that property is both accessible and affordable and we’ll be monitoring the situation very carefully as the housing sector continues to recover.”
Ben Thompson, managing director at Legal & General Mortgage Club, said: “More positive figures reflect the improving picture in the UK housing market. It is hard to tell whether it was the government’s Funding for Lending Scheme or Help To Buy that has assisted the recovery, in reality both have very definitely played their part.
“Perhaps more encouragingly it appears as though consumer confidence has most definitely picked up and this is very good news.
“Positive sentiment and confidence, to make a large commitment like buying a new home, make for a more sustainable and healthy recovery.”