Rise in demand but housing market still subdued
Tuesday, 13 December 2011 9:04 AM
Demand from buyers has increased for the third month in a row, according to the latest housing market survey from the Royal Institution of Chartered Surveyors (RICS).
Seven per cent more surveyors said new buyers rose rather than fell in November, making this the first time demand has been in positive territory for three successive months since the spring of 2010.
The increased demand fed through into rising sales for a balance of +14 per cent of surveyors (up from +9 in October) and an increase in the number of sales per surveyor.
However, November also saw an increase in the average number of unsold properties per branch to 73.2. That is the highest level since December 2008.
The balance on house prices remains negative, with a 17 per cent more surveyors reporting falls than rises in November, but close to 60 per cent said prices were unchanged on the month. A balance of 21 per cent expect prices to fall over the next three months.
However, the national picture concealed big differences between regions. London was the only region where surveyors said prices had risen over the month and the only one where they expected them to rise over the next three.
RICS housing spokesperson, Alan Collett, said: "It is encouraging that buyer interest has edged upwards in the face of the endless diet of negative news from Europe and the turmoil in financial markets. However, a meaningful recovery still seems some way off."
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