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12th May 2009
New buyer enquiries hit the highest level for almost a decade.
The Royal Institution of Chartered Surveyors is pointing to “tentative signs” of recovery as new buyer enquiries hit the highest level for almost a decade.
The RICS housing market survey for April found that 41% of surveyors saw
rise in the level of new buyer enquires, the highest level since August 1999.
Surveyors in London are reporting particular buyer interest in London, with the number reporting a rise in buyer enquiries in the capital going from 63% in March to 70% last month.
A spokesman for RICS says these are tentative signs that the market is starting to pick up but add that a massive market turnaround is unlikely given the contraction in the money supply and uncertain employment prospects.
He says: “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 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 LTV ratios and make accessibility difficult even for those who have accumulated considerable equity in their existing properties.”
RICS adds that some of the buyer interest is translating into sales but at low levels.
Average sales over the past three months hit 10.6 properties, up from 9.7 in March.
Supply is still extremely limited, with the net balance of surveyors reporting new instructions remaining in negative territory. |
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