Housing Market Seeing 'Tentative Signs' of Recovery

by Peter Wakeford
Published on 12 May 2009
Housing Market Seeing 'Tentative Signs' of Recovery

The latest figures from the Royal Institution of Chartered Surveyors reveal that sales and buyer enquiries both increased last month.

There are "tentative signs" that the housing market is recovering, according to the Royal Institution of Chartered Surveyors (Rics).

Figures for April from the organisation revealed that sales increased slightly, with surveyors selling an average of 10.6 properties over the past three months, up from 9.7. Additionally, the ratio of surveyors reporting a rise rather than a fall in buyer enquiries reached 41 percent - far above March's figure of 32 percent and the highest figure for nearly a decade.

The statistics come on the back of a claim by the Lloyds Banking Group - the country's biggest mortgage provider - that house prices could begin to rise by the end of the year.

However, Rics spokesman Jeremy Leaf warned that "we are unlikely to see significant improvement while money remains in short supply and the employment picture is uncertain". He explained: "Transaction levels could benefit from an increase in supply but falling prices and low interest rates are discouraging sellers as is the latest change in HIPS [Home Information Packs] legislation.

"House prices could stabilise in the coming months but prospective purchasers - and first-time buyers particularly - will continue to encounter challenges while banks maintain current loan to value ratios and make accessibility difficult even for those who have accumulated considerable equity in their existing properties."

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