Further rise in buyer enquires but new instructions fall again according to the RICS Survey 2009

Key points:

Rising buyer interest fuels greater sales activity
Changes to Home Information Pack (HIP) rules lead to a sharp drop in new instructions 

Increase in sales to stock ratio for fourth consecutive month suggests prices could stabilise later in the year

The seasonally adjusted net balance of surveyors reporting falling rather than rising prices posted a marked improvement in April this represents the best reading since January 2008. Significantly, the tentative signs of a pick-up in activity have become more broadly based over the past month.

New buyer enquiries have now increased for six months in a row with the positive net balance in April climbing to its best level since August 1999 equally there is also more evidence that the higher level of buyer interest is feeding through into actual sales. Newly agreed sales, measured on a net balance basis, rose over the month as did the average sales per surveyor series. However, new instructions to sell property continued to fall and sharply so.

Anecdotal evidence suggest the fall in new vendor instruction this month is due to the change in the rules governing Home Information Packs (HIPs) that were introduced on 5 April.

That said, the stock of unsold property on surveyors books edged up slightly, with the April data showing average stocks per surveyor standing at 69.3 (which is 19% below year ago levels). Although stocks levels increased slightly, sales levels increased proportionally more so, resulting in a further increase in the sales to stock ratio.

This key guide to the future price trend has now risen for four successive months.

From a regional perspective, the net price balance improved across all regions in England and Wales apart from Yorkshire and Humberside and the North.

In the former, the price balance stabilised, whilst in the latter, the price balance deteriorated.

The price balance improved markedly in London but it still remains negative.

In Scotland the price balance remained stable, whilst in Northern Ireland, the price balance improved slightly.

Tailored Home comments: The results above continue the slow but steady increase in housing market activity. Mortgage availability remains tight but loans to value are improving from lenders. We strongly advise that now is an excellent time to purchase a home in the UK. Housebuilders are still offering incentives, but once existing stock begins to dry up and new starts take longer to come onto the market expect demand to outstrip supply later in the year. Equally sellers are seeing viewings on the increase and will no doubt be deterred to drop the price of their property to the drastic levels of late.

Whilst we are far from the heady peaks of early 2007, the market is definitely stirring back into life.

To buy a home in the UK whether a new build or a resale property contact one of our friendly team now on 0845 838 7143 or email the team on info@tailoredhome.co.uk

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