THE UK housing market appears to have finally turned a corner as buyers returned to the market in their biggest
THE UK housing market appears to have finally turned a corner as buyers returned to the market in their biggest numbers for four years, according to the latest survey by the Royal Institute of Chartered Surveyors (RICS).
During July, the number of potential buyers looking to enter the market grew at the fastest rate since July 2009, as a nett balance of 53 per cent more chartered surveyors reported increases in demand. Since the start of the year, buyers have gradually been returning to test the market — thanks partly to government finance initiatives — and the number of would-be buyers seen in July reached a sizeable peak.
This growth was seen in 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. Notably, this was not only confined to more affluent parts of the country such as London, but every region saw growth as the end of the summer period approached.
In tandem with rising buyer confidence, more potential sellers looked to test the market and place their homes for sale. Last month, 15 per cent more respondents reported rises rather than falls in new instructions.
Market forecasts predict a rise in prices across the country.
Meanwhile, transaction levels are also expected to grow, as 53 per cent 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 for the property market as it looks like at long last a recovery could be around the corner.
“This is the first time that everywhere has experienced some improvement. It is clearly good news.”