RICS: Housing market on path to recovery

Growth is concentrated in London where surveyor expectations of price rises are hitting a two year high. There are also reports of sealed bids resurfacing. One Kensington agency reports receiving 33 sealed bids on a house, all in excess of the asking price, where they received only two offers on an identical property just a year ago.

Almost 50% more London chartered surveyor estate agents reported a rise in house prices over February, the largest rise in three and a half years. Family homes are the properties in highest demand.

The survey also shows that 17% more chartered surveyor estate agents across England and Wales reported a rise in prices, the firmest growth since June 2004. New purchase enquiries have also risen despite fading hopes that interest rates will fall again.

The stock of available properties on surveyors’ books fell 4% from the same time last year. According to RICS, this tightening of supply has brought a new sense of urgency to the demand side of the market with buyers keen to progress deals to avoid disappointment.

Around the UK the picture is mixed with more moderate price rises in the South East and South West accompanying muted growth in other regions, and small falls in the Midlands. Price inflation has slowed in Scotland after several months of strong rises.

James Scott-Lee, the RICS spokesman, said: “Traditionally, where London goes the rest of the market follows and agents will be hoping this is the starting gun on wider, firmer housing market growth as buyers begin to compete more aggressively for the homes they want.

“Overall, the national picture shows a pick up in family two and three bedroom houses. This is precisely the kind of house that is being built less and less as the Government’s planning policy favours high density building, which often means two bedroom flats.

“With available property in short supply, sellers are retaining a strong position if their pricing is realistic."

Home | Back to News

Bridging Loan ~ For all your Bridging requirements, commercial, residential and property developer bridging. Lagoon Bridging Loans Latest News, Latest News