According to the latest RICS (Royal Institution of Chartered Surveyors) housing market survey, in June house price expectation rose as did the number of buyer enquiries, giving evidence that the house market is picking up.
House price expectations rose in June, the first time since May 2007.
With low levels of stocks on surveyor’s books, increased buyer enquiries and rising house price expectations, there is evidence that the housing market is picking up, increasing surveyor optimism.
The low level of stocks continues to give support to house prices.
House sales rose again in June, albeit from very depressed levels. The average number of properties sold in the past 3 months now stands at 12.7, up from 11.7 previously.
RICS spokesperson, Jeremy Leaf, said ‘Although the market is showing signs of improvement, it is unlikely that there will be a sustained upturn while mortgage lenders remain risk adverse.’
There is concern though that as sellers start to come to the market this could impact on the housing market recovery.
As Jeremy Leaf commented ‘While supply remains tight, the market may continue to show tentative signs of firming but instructions are starting to increase in some regions and this could dampen any meaningful recovery as long as economic conditions remain quite so uncertain.’
The Government, along with the Banks and Building Societies, really do need to find a way of ensuring mortgage lending becomes more readily available, whilst still balancing the need to effectively manage risk.