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Hope springs eternal for the housing market

Hope springs eternal for the housing market

Category: Mortgages

Updated: 11/05/2010
First Published: 11/05/2010

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.
Improving weather and an anticipated post-election bounce has seen housing market sentiment improve.

A snapshot of the opinions of the UK's chartered surveyors has found that 17% more of them expect a rise rather than a fall in house prices, up from a net balance of just 9% in March.

As other recent figures have suggested, prices in London are supporting the UK-wide upturn. A net balance of 55% of surveyors said they expected values to rise in the capital, according to research conducted by the Royal Institution of Chartered Surveyors (RICS).

The only locations where respondents did not see rises in property prices were Wales and Yorkshire and Humberside.

Opinion suggested that a combination of improving weather conditions and the finalisation of the general election would support price rises, although the hung parliament and current uncertainty could undermine this.

Figures also showed that more surveyors reported that newly agreed sales had improved in April, as had completed sales, while the average amount of housing stock had fallen by an average of 6%.

"For much of 2010, the housing market has been under the shadow of the general election with the gap between supply and demand growing wider as potential house buyers opted to stand on the sidelines awaiting the outcome of the poll," said Jeremy Leaf, RICS spokesperson.

"However, the start of spring has seen renewed optimism with the good weather improving sentiment and surveyors expecting an increase in both sales and house prices.

"The housing market often sees an increase in new instructions in the early part of the year with sales boosted in the spring and this year has been no exception."

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