House buyer interest grows

According to the latest Royal Institute of Chartered Surveyors (RICS) housing market survey, February saw new house buyer interest grow for the 4th consecutive month.

This increase in buyer activity is likely to be due to the cuts in the Bank of England base rate coupled with a continued reduction in house prices.

Unfortunately this interest is not yet translating into house sales.

The average number of house sales per agency is now at the lowest level since the RICS housing market survey began in 1978.

RICS spokesperson, Jeremy Leaf, said ‘Potential buyers continue to come through estate agents doors but without mortgage finance transaction levels are likely to remain close to all time lows.’

He went on to say ‘The Government must provide guarantees for the new issuance of residential mortgage backed securities to help first time buyers in particular and give the market much needed impetus.’

House stock levels continued to fall as vendors look to rent our their property instead of trying to sell in this difficult market.

The number of newly agreed or completed house sales also fell back slightly.

So whilst the house buyer interest appears to be starting to grow the other housing market indicators still look pretty poor.