RICS: Buyers return to market
Thursday, 16 Nov 2006 08:38
Surveyors report the housing market was bouncing back strongly in October (Photo: pixmedia)
Buyer enquiries were up in October, bouncing back strongly from last month's slowdown, according to the Royal Institution of Chartered Surveyors (Rics).
The monthly report on the property market also finds the number of chartered surveyors reporting a rise in house prices was up 2.4 percentage points on September, going from 45.7 per cent to 48.1 per cent.
This is more than double the long-term average of 21 per cent.
And the number of completions per surveyor was also up, reaching the highest level since August 2004.
However, the high number of sales in October saw stock levels hit the lowest level since August 2004.
"Even after last week's interest rate rise, surveyors are still confident that the housing market will remain buoyant," said Ian Perry of Rics.
He added: "London continues to see city bonuses inflate the housing market beyond the accessibility levels of most first-time buyers, and the rest of nation is showing early signs of building up momentum as prices pick up in the laggard markets of the midlands and northern England.
"But the market is unlikely to feel cold winds from high finance costs until mid year at the earliest as economic conditions are favourable."
Mr Perry said it was too early to call whether interest rates would rise again early next year, with the impact of November's interest rate rise on the high street and the business sector to offer better indicators of what the Bank of England will decide.XXX