Market’s growing optimism

Ian Perry of RICS
Ian Perry of RICS

BUYER demand in the North West continued to rise during October, with purchasers across the region looking to test the pre-Christmas market.

During October, chartered surveyors reported a considerable rise in new buyer enquiries with a net balance of 23 percent more respondents in the North West reporting rises reveals the latest Royal Institute of Chartered Surveyors (RICS) housing market survey.

It appears that the growing optimism shown in recent months may slowly be translating into an upturn in activity.

Alongside this, the amount of homes coming onto the region’s market also saw an improvement, as supply rose at its highest rate since March 2010. Last month, 45 percent more respondents reported rises rather than falls in vendors placing their properties on the market.

Moving on to prices, with demand seeing an upturn in fortunes, prices across the North West continued to stabilise with a net balance of five percent more surveyors reporting drops. While still in negative territory, this represents the least negative reading since April 2011.

Regionally, all areas of the UK saw improvements in levels of demand with the exception of Northern Ireland and Scotland. Significantly, the North East and the West Midlands saw the most notable rises, with surveyors in those regions reporting net balance readings of +56 and +35 percent respectively.

Looking ahead, chartered surveyors in the North West are hopeful that the current upturn in interest should translate into a greater number of sales, as a net balance of 62 percent more respondents predicted rises in transactions over the coming three months.

RICS North West housing spokesperson, Ian Perry of Your Housing Group said: “The number of potential buyers going out and viewing property saw a welcome boost last month.

“It seems that with Christmas around the corner, those who are in a position to buy decided to get out there and see what is available.

“That being said, overall activity is still very low in most parts of the country and what the market desperately needs is for this to translate into actual sales.

“Initiatives like the NewBuy scheme are all well and good but they need time to bed in and take effect. With the Autumn Statement around the corner, we would like to see the government continue to focus on delivering new homes and encouraging the banks to lend at affordable levels.