Rics: New buyer enquiries up for seventh consecutive month

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by Kay Murchie

There is further evidence of a recovery in the housing market today after the Royal Institution of Chartered Surveyors (Rics) reported that new buyer enquiries rose for the seventh consecutive month in May, while completed sales were at their highest since August 2008.

According to surveyors, continued growing interest from potential buyers, together with fewer homes being put up for sale is stabilising UK house prices.

Earlier this month, the Halifax revealed that UK house prices experienced their biggest rise since October 2002.

According to the Halifax, house prices were up 2.6% in May compared with the previous month, while the Nationwide reported a rise in prices of 1.2% in May.

However, the Rics points out that while house prices are still expected to fall, surveyors were their least negative on the outlook for nearly two years.

While completed sales were reported to be at a nine-month high, the Rics highlights that with 11.8 properties sold per surveyor in the last three months, this is still more than 30% down on the same period a year ago.

Ian Perry of Rics comments: “On the face of it, the housing market does appear to be close to bottoming out with activity picking up in a material way and prices at last stabilising.”

“However, it is important to remember that the lack of supply has been as important in underpinning prices as the rise in demand,” explains Mr Perry.

Mr Perry cautioned that current economic conditions could still restrict any recovery in the housing market - particularly rising unemployment.