Not Enough Properties for Sale!

According to the Royal Institution of Chartered Surveyors there are not enough properties on the market for sale! Although it is different in some areas of the country, prices have been best so far in the South of England and the Survey shows that quality properties were now receiving competitive bids.

It is the first time since May 2007 that surveyors have reported property price increases rather than price falls and, predictably, London and the South-East of England are showing the largest increase although the Poll still shows price falls in Wales, as well as Yorkshire and Humberside.

Although enquiries from new buyers increased in September compared with August the level of new instructions from sellers decreased. Despite the problems first-time buyers continue to encounter in securing finance, the level of enquiries from potential purchasers is gradually rising. This imbalance between demand and supply may mean that house prices will increase rapidly in the short term which may not necessarily be good for the markets or the economy.

This latest Report supports a widespread opinion in the industry that house prices have been creeping up since the spring because relatively few people have been putting properties on the market.

· Halifax says house prices have risen by nearly 6% since April, adding £9,000 to the average price.
· Nationwide says prices have now risen for five months in a row, and are back to where they were a year ago.
· Sales show a modest improvement and are up on the same period last year.

So, the question is, have we yet turned the corner on the deepest recession since the 1930’s?

For advice on residential property matters contact Simon Brooks.