The report, published today (Tuesday 11 June) says that buyers across the country have begun to return to the market.
The data shows that chartered surveyors in the UK sold on average 17.9 properties during the three months to May. While low compared to the market peak of six years ago, it still represents the highest reading since January 2010.
Furthermore, sales are expected to continue their rise over the next three months with a net balance of 35% more respondents predicting transaction levels will grow, up from 26% in the previous report.
RICS says that a key driver behind this jump in activity is the recent upturn in buyers testing the market. Interest from would be buyers has now risen for four consecutive months and, during May, 30% more chartered surveyors reported rises rather than falls in new buyer enquiries. This represents the highest reading since October 2009 and is a sign that market confidence is gradually being restored.
Meanwhile, prices up edged last month with 5% more chartered surveyors reporting increases rather than decreases. Until recent months price stability has been confined largely to the South East of England and London, whereas now this is beginning to extend to other areas of the UK.
Moreover, with the sales market maintaining its slow recovery, chartered surveyors also expect house prices to rise over the coming three months, with a net balance of 20% more respondents predicting growth.
Moving on to the rental market, tenant demand continued to rise during May, although the rate of growth has begun to slow in the last few months. Even so, respondents to the survey predict further rises in rents over the coming three months.
‘May was an interesting month for the housing market. More people decided to get out there and view property and more transactions went through than in quite some time,’ said Peter Bolton King, RICS global residential director.
‘Most encouragingly of all, though, is that stability is not confined purely to London and the South East, as has been the case, but is now starting to extend to areas right across the country. There is still a very long way to go until we see a full scale recovery but green shoots are beginning to sprout,’ he added.
Brian Murphy, head of lending at the Mortgage Advice Bureau (MAB), said that the report will add to the confidence that is beginning to come back into the property market. 'Back in 2010 consumer choice was limited to around 4,500 mortgage products on average whereas in May there were almost twice as many available at over 9,600, through mortgage brokers or direct from lenders,' he pointed out.
'We are starting to see queues forming, as the burst of activity draws people’s attention to a window of opportunity when it comes to buying and selling property. With so many good deals out there buyers are keen to act before prices climb any higher, while homeowners looking to sell can find themselves spoilt for choice when it comes to attracting an offer,' he added.
