RICS: housing market on road to recovery

Published on

United Kingdom

The housing market in the UK looks to have finally turned a corner as buyers returned to the market in their biggest numbers for four years, according the latest RICS Residential Market Survey.

During July, the amount of potential buyers looking to enter the market grew at the fastest rate since July 2009, as a net balance of 53% more chartered surveyors reported increases in demand.

Since the start of the year, buyers have gradually been returning to test the market, yet the amount of would-be buyers seen in July saw a sizeable peak, RICS said.

This growth was seen in each and every part of the UK as the recovery, initially focused in the South East, spread to regions across the country. The West Midlands and the North East – areas which have suffered more than most since the market crash – experienced the biggest increases in buyer activity in July.

Consequentially, prices rose in the country for the fourth consecutive month and grew at their fastest rate since the market peak of November 2006.

RICS said that notably, this was not only confined to more affluent parts of the country such as London, but every region saw growth as we enter the end of the summer period.

In conjunction with rising buyer confidence, more potential sellers looked to test the market and place their homes up for sale. Last month, 15% more respondents reported rises rather than falls in new instructions. This reading has now been in positive territory for the last six months. However in each of these months it has been outstripped by the change in new buyer enquires.

Looking ahead, it seems that prices across the country are going to continue to rise further, with a net balance of 35% more surveyors predicting increases. Meanwhile, transaction levels are also expected to grow, as 53% more respondents expect sales to rise rather than fall over the coming three months.

Peter Bolton King, RICS’ global residential director, said: “These results are great news of the property market as it looks like at long last a recovery could be around the corner. Growth in buyer numbers and prices have been happening in some parts of the country since the beginning of the year but this is the first time that everywhere has experienced some improvement. It is clearly good news that those parts of the property market that were struggling are at last showing some signs of life.”

COMMENT ON MORTGAGE SOUP

We want to hear from you!
Leave a comment and get the conversation started.
You need to register to post, so please login or sign up below.

Latest articles

The Partnership to open Tunbridge Wells office

Property law firm The Partnership is to open an office in Tunbridge Wells as...

Property investors retain appetite for build-to-rent despite construction slowdown

More than seven in 10 professional property investors plan to invest in build-to-rent developments...

Lenvi launches loan verification tool to tackle double pledging

Lending technology provider Lenvi has launched automated verification software designed to detect double pledging...

Newcastle BS cuts residential rates and adds base rate trackers

Newcastle for Intermediaries has reduced selected residential mortgage rates by up to 0.25% and...

Swansea BS gives £10k to fund cancer nurses in Wales

Swansea Building Society has donated £10,000 to Prostate Cymru to support its campaign to...

Latest publication

Other news

The Partnership to open Tunbridge Wells office

Property law firm The Partnership is to open an office in Tunbridge Wells as...

Property investors retain appetite for build-to-rent despite construction slowdown

More than seven in 10 professional property investors plan to invest in build-to-rent developments...

Lenvi launches loan verification tool to tackle double pledging

Lending technology provider Lenvi has launched automated verification software designed to detect double pledging...