Recent research from Halifax indicates there is higher activity within the property market causing an increase in house prices for October.
The Halifax reported a 1.8 per cent rise in house prices compared to the previous month of September. However this is 0.3 per cent lower compared to the three month average of May, June and July this year. While the market shows signs of improvement, activity remains slow by historical levels, with prices predominantly remaining flat over recent months.
On a separate survey conducted by the Royal Institution of Charted Surveyors (RICS) released today shows over half of surveyors are reporting stable prices. Three quarters off those reporting a decline said prices were down only between zero and two per cent. Ian Perry a housing spokesman from RICS said “It is encouraging that the activity levels appear to have edged upwards over the past month.”
Rising prices may deter first time buyers in London, which continues to surpass the national trend. Yet again the capital was the only region to show increasing house prices, according to RICS. “With the chaotic events in the Euro area threatening to spill over to the UK and banks still imposing though conditions on loans to first time buyers, any recovery in sales is still likely to be relatively modest,” Perry warned. “This will inevitably leave many people who would like to own a home unable to access the market.” This may lead to a rise in the amount of First time buyers seeking assistance from us as a London mortgage broker.
The survey also showed both supply and demand improved throughout the country. An increase of eight per cent of chartered surveyors reported recently agreed sales rose rather than fell. “Some surveyors attributed this increase to growing realism from many sellers. Who now appear to more willing to take offers in order to secure a sale.” Completed sales rose to its strongest level since April 2011, to an average of 15 sales per surveyor over the past three months. Both new buyer enquiries and new instructions to sell edged up last month, which further supports an increase in buyer demand and supply levels, resulting in an increase in activity during October.
