RICS - Mild Autumn Keeps Market Warm
RICS Housing Market Survey of England and Wales. Three months to September 2003
As Britain enters its first cold snap it has become clear that the mild Autumn has kept the housing market moving. The pace of increase in the number of people looking to buy a house is at its highest since June 1999, a strong indication that sales are likely to increase over the coming months, says RICS (Royal Institution of Chartered Surveyors) in its latest survey of England and Wales, published today (21st October 2003).
A net 49% of chartered surveyors reported a rise in buyer enquiries in September, up sharply from the 18% figure recorded in August. The trend is a reflection of stability in the employment market, low interest rates, and improving confidence levels in the economy.
46% more surveyors expect sales to rise rather than fall over the next three months. Expectations have risen steadily since a dip in the first half of the year.
The number of properties on the market fell in September, marking the fourth consecutive monthly decline.
The fall in the stock of unsold property and surge in buyer enquiries has helped to increase surveyors? confidence in their outlook for price rises. 43% more surveyors expect house prices to rise over the next three months than decline, compared to 23% in August.
Price rises were evident across Wales and all the northern regions of England, although the rest of the country, particularly the southeast and London, are still dragging their heels. Although the outlook here is looking more positive. In September, 34% more surveyors reported a rise in prices than a fall, compared to 9% in the previous month.
RICS housing spokesman, Jeremy Leaf, says:
"We would expect to see market activity rise in September as people turn their attention away from summer pursuits and focus on moving house, but this year it has picked up more than usual. However, the market has remained patchy with some notable hot and cold spots."
"There seems to be increasing demand for middle market housing in desirable areas across the country and buyers are snapping up these properties quickly."
"Although the London market remains subdued, it would be fair to say that the pessimism which prevailed earlier this year is starting to lift."
"In general, we are seeing signs of a tilt back towards a sellers' market."