More sellers return to the housing market as prices rise in the North West says RICS UK Residential Market Survey
Rising prices and burgeoning buyer demand have led to an increase in homes coming onto the property market in the North West, says the August RICS (Royal Institution of Chartered Surveyors) Residential Market Survey.
Despite the holiday season, 47 percent more surveyors in the region reported increases rather than decreases in new instructions last month (up from 41 percent back in July). With positivity returning to areas right across the North West, it seems those who may have been waiting for the right time to sell are choosing to do so now.
However, although supply increased last month, it did not rise enough to keep pace with the sheer weight of demand. During August, the number of would-be buyers increased yet again as increasingly accessible finance allowed more people to enter the market. A net balance of 89 percent more respondents reported growing numbers of enquiries from potential buyers last month (compared with 47 percent in July).
House prices increased in the region too, as a net balance of 27 percent more North West surveyors reported rises rather than falls in prices, up from 17 percent in July.
The number of homes sold in the region also rose during the month of August, with 80 percent more surveyors reporting a rise rather than a fall in newly agreed sales (compared with 54 percent back in July).
Across the country, each region saw supply increase as the recovery continues to spread from the South East of England to other areas. The South West and the North East, in particular, saw the number of new homes coming onto the market rise significantly.
Looking ahead, it seems that recent price rises are going to continue unabated. A net balance of 58 percent more surveyors in the region expect further price growth over the next three months as the market continues find its feet. Meanwhile, transaction levels are also expected to grow, as 59 percent more respondents expect sales to rise rather than fall over the coming three months.
Derek Coates of Venmores estate agents in Liverpool says: “The market continues to improve with increased activity. Enquiries, instructions, offers and sales are all showing increases on previous months. This rise in market activity has led to increased prices in the better quality residential suburbs although the flat market within the city centre shows no real sign of increasing values.”
Jonathan Clayton, FRICS of Bentley Higgs & Co in Blackpool adds: “Activity in the sales market is beginning to improve although prices remain static. Unfortunately there is still an overhang from a number of properties which were marketed at inflated asking prices but new instructions appear to be generating a good level of interest.”
Peter Bolton King, RICS Global Residential Director, concludes: “It’s not surprising that more and more people are looking to sell their homes. The buyers are out there and prices are on the up so if you’re looking to move it’s a good time to do so. What we don’t wish to see, however, is prices rise to such an extent that they become unaffordable. For the market to work properly, it’s vital that property is both accessible and affordable, and we’ll be monitoring the situation very carefully as the housing sector continues to recover.”