June 15, 2009
Homebuyer Surge
New homebuyer enquiries rose strongly in May, increasing for the seventh consecutive month.
Figures from the Royal Institution of Chartered Surveyors (RICS) revealed the biggest surge in new buyers since August 1999, boosting hopes of a recovery in the housing market and potentially the wider economy.
The number of homes sold by estate agents continued to increase, albeit from a very low level, to an average of 11.8 properties per month per agent over the three months to the end of May.
That compares to 10.6 properties per agent for the three months to the end of April.
The biggest surge in activity was recorded in London, followed by Scotland, the South East and the South West.
The RICS survey comes hard on the heels of positive data from both the Nationwide and Halifax House Price Indices, which showed prices rising by 1.2% and 2.6% respectively in May.
RICS pointed out that property prices are being buoyed up by the lack of supply, with the stock of property for sale currently extremely limited.
The average number of properties on a chartered surveyor estate agent’s books stood at 58.4n May, and has been falling every month for two years.
Spokesperson Ian Perry said:
“It is important to remember that the lack of supply has been as important in underpinning prices as the rise in demand.
“Moreover, with the economic backdrop still quite uncertain, unemployment is set to continue increasing sharply and finance for first-time buyers is still in short supply, there are a number of significant obstacles for the market to overcome over the coming months.”
