Housing Market Improves Slightly

The Royal Institute of Chartered Surveyors (RICS) has today released a report indicating that the housing market has improved slightly. In their Housing Market Survey, RICS has indicated a rise in both the number of sales and the number of enquiries from new buyers in the market. The figures represent good news for the housing industry, but RICS are keen to point out that these increases are from historically very low levels.

Enquiries from new buyers nationally were up for the sixth month in a row with the number of Chartered Surveyors reporting an increase up nine percent on the previous month. In London, where Chartered Surveyors appear more optimistic than elsewhere, seventy percent more members reported a rise in buyer enquiries than a fall. Whilst the increase in activity is resulting in a slight increase in sales, this is still at a historically low figure of approximately three properties per month.

Perhaps of more interest is the fact that the sales to stock ration of properties on the market has risen for the fourth month in a row. This ratio is normally considered one of the best guides to future house prices and would indicate that some stabilisation in house prices is on the cards for this year. It is hoped by many that having identified a trend for price stabilisation, Chartered Surveyors start to give weight to this when providing valuations.

Whilst any news of increased activity in the housing market is good news, the report has been received with a certain amount of scepticism by brokers. Many have voiced the opinion that the seeds of recovery will continue to fall on barren ground until the housing market is fixed. With wholesale money markets remaining virtually closed, and mortgage lenders only paying lip service to those with less than a 25% deposit, there is no clear indication of how any increase in activity will be funded.

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