RICS - Housing Market Survey of England and Wales - 3 Months to August 2003
There are fewer properties for sale and more people looking, with investors snatching up an increasing share of the market, according to RICS (Royal Institution of Chartered Surveyors) in its latest survey of England and Wales, published 16 September 2003.
Surveyors recorded an increase in the number of investment buyers over the last three years. In October 2000, just 8 per cent of the total number of properties sold were to investors, now the figure has risen to 13 per cent (August 2003). This suggests that first time buyers are being squeezed out by buy-to-let investors.
The steady rise in new buyers looking for houses continues, with 16 per cent more surveyors reporting a rise in buyer enquiries than a fall during August, compared with 11 per cent in July and 5 per cent in June. This trend is a reflection of stability in the employment market and low interest rates.
The number of properties on the market fell in August, marking the third consecutive monthly decline. The number of properties coming onto the market is also declining. People do not appear to be in a hurry to sell as the market has proved to be resilient despite fears of a crash earlier this year.
House prices have risen slightly in August, the first increase since January this year. 8 per cent more surveyors reported a rise in prices than a fall for the three months to August compared to 2 per cent more reporting a fall in July.
Price rises were evident in all the northern regions, but particularly in the North West. Modest price rises were also recorded in the West Midlands and Wales.
There is a large increase in market confidence, with 46 per cent more surveyors expecting a rise in property sales than a fall over the next three months. Back in April only 5 per cent more surveyors expected a rise in sales than a fall.
RICS housing spokesman Jeremy Leaf says:
The summer months are traditionally quiet, so we expect to see an increase in activity as we come into the autumn following the start of the new school year.
The national picture is one of quite modest house price rises for the first time this year, although the south is still trailing behind the north.