By Andrew Batt:
The
amount of homes sold in the United Kingdom over the past three months
reached its highest level since January 2010 as buyers across the
country began to return to the market.
According to the latest
RICS residential market survey, published today, chartered surveyors in
the UK sold an average of 17.9 properties during the three months to
May. While low compared to the market peak of six years ago, it still
represents the highest reading since January 2010. Furthermore, sales
are expected to continue their rise over the next three months with a
net balance of 35 percent more respondents predicting transaction levels
will grow (from +26 percent).
A key driver behind this jump in
activity is the recent upturn in buyers testing the market, according to
the research. Interest from would-be buyers has now risen for four
consecutive months and, during May, some 30 percent more chartered
surveyors reported rises rather than falls in new buyer enquiries. This
represents the highest reading since October 2009 and is a sign that
market confidence is gradually being restored.
Meanwhile, prices
up edged last month with five percent more chartered surveyors reporting
increases rather than decreases. Until recent months price stability
has been confined largely to the South East of England and London,
whereas now this is beginning to extend to other areas of the UK.
Moreover,
with the sales market maintaining its slow recovery, chartered
surveyors also expect house prices to increase over the coming three
months, with a net balance of 20 percent more respondents predicting
growth.
In the rental market, tenant demand continued to rise during
May although the rate of growth has begun to slow in the last few
months. Even so, respondents to the survey predict further rises in
rents over the coming three months.
Peter Bolton King, RICS Global
Residential Director, said: “May was an interesting month for the
housing market. More people decided to get out there and view property
and more transactions went through than in quite some time. Most
encouragingly of all, though, is that stability is not confined purely
to London and the South East, as has been the case, but is now starting
to extend to areas right across the country. There is still a very long
way to go until we see a full scale recovery but green shoots are
beginning to sprout."
Andrew Batt, International Group Editor of PropertyGuru, wrote this story. To contact him about this or other stories email andrew@allproperty.com.sg
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