Optimism in the housing market

The latest monthly survey carried out by the Royal Institution of Chartered Surveyors (RICS) has revealed some positive news for the UK housing market.

In January, new buyer enquiries in England and Wales were found to have increased for the third consecutive month; with 16% more chartered surveyors confirming a rise rather than a drop in the number of enquiries made.

The survey also found increased positivity among its members in relation to property sales, with 10% more chartered surveyors expecting home sales to pick up soon. In London and across the South of England, this new level of confidence was found to be most apparent, with the balance of surveyors anticipating a rise in property sales increasing from 18% to 38%.

Despite Halifax's announcement last week that the average price of a home in the UK increased by 1.9% in January, RICS' survey found that the expectation among chartered surveyors was that house prices would continue to fall in the near term. Indeed, 76.3% more surveyors reported a fall instead of a rise in house prices in December, compared to 73.9% in November.

"The latest survey provides further evidence of the eagerness of buyers to try and pick up bargains. This interest has yet to translate into sales but transactions may pick up in the coming months," said Jeremy Leaf, a spokesman for RICS.

He went on to say that the latest fall in interest rates could improve confidence for those on the margins and encourage purchasers looking for more attractive finance deals.

Source: guardian.co.uk and the Royal Institution of Chartered Surveyors (RICS) | Last updated: 10th February 2009

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