The average number of houses sold in the UK in the first quarter of 2014 has increased to its highest level in six years, confirming that the country’s property market recovery is well underway.
This latest increase in transactions comes at a time when the market is showing greater signs of life right across the country, according to the March market survey from the Royal Institution of Chartered Surveyors (RICS).
Respondents to the monthly survey sold on average 22.7 homes, the highest amount since February 2008 and all parts of the UK apart from Wales saw buyer enquiries increase and newly agreed sales rose, most notably away from London and the South East for the second consecutive month.
However, while activity is now showing encouraging signs of life in many areas that were previously fairly stagnant, the market in general continues to be hampered by the lack of homes coming onto the market, the report also says. New instructions from vendors continued to fall in March as the predicted spring bounce failed to materialise, a situation that was reflected in most parts of the UK.
Significantly, the increase in activity continues to be accompanied by rising house prices. During March, 57% more surveyors across the country saw prices rise rather than fall. Outside London and the South East, prices experienced the most noticeable growth in the South West and the East Midlands.
Looking ahead, with no indication that the imbalance between buyer demand and homes on the market is going to change any time soon, surveyors expected prices to continue to increase as we enter the summer months.
‘Now that the housing market recovery is well and truly underway and mortgage finance is more readily available, buyers seem to be looking to test the market right across the country, not just in the usual hot spots of the South East,’ said Simon Rubinsohn, RICS chief economist.
‘It is a major concern that we are not seeing enough houses coming onto the market. For the market to operate effectively, we desperately need more homes in areas where people want to buy and want to live. Until this happens we’re likely to see prices to continue to increase and it is going to be ever harder for many first time buyers to conceive of ever owning their own home,’ he added.
*source Propertywire