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 conveyancing power of sales-ready packs

Conveyancing is stressful – and I'm not just talking about the poor customer experience....

Cloud is not about where you host technology, it’s about how

When lenders talk about cloud, the discussion often begins – quite reasonably – with...

Property chains adding £2k to moves

Property chains are adding more than £2,000 to the average cost of moving with...

The Bath adopts AI verification in push to streamline mortgage processing

Bath Building Society has partnered with fintech Sikoia to automate document handling, income verification...

FCA moves to simplify UK securitisation regime in joint reform with PRA

The Financial Conduct Authority (FCA) has published Consultation Paper CP26/6, setting out proposed changes...

Latest publication

Other news

The conveyancing power of sales-ready packs

Conveyancing is stressful – and I'm not just talking about the poor customer experience....

Cloud is not about where you host technology, it’s about how

When lenders talk about cloud, the discussion often begins – quite reasonably – with...

Property chains adding £2k to moves

Property chains are adding more than £2,000 to the average cost of moving with...