The Royal Institution of Chartered Surveyors' Housing Market Survey for August, published this week, reveals that sales increased to 17, up from 15.3 in July, which means they are now at their highest level since May 2008. Nevertheless, they remain around one third lower than they were at the beginning of last year.
The average stock of unsold property on surveyors’ books also increased, up from 60 to 63, though this is around 23% lower than August 2008, which is helping to fuel the increase in sales. As Grant Robertson from Allied Surveyors in Glasgow, says: "Lack of stock is causing a sharp increase in sales and values and coupled with modest improvement in mortgage availability gives rise to a general feeling that we may now be through the worst of it. Stock is urgently needed to stop the recovery stalling."
RICS' survey reveals that the ratio of average sales to the average stock of unsold property on the market increased again from 25 to 27 - the highest reading since January 2008.
Newly-agreed sales, measured on a net-balance basis, averaged 34, which is a positive result for the sixth consecutive month, though slightly lower than July. Newly-agreed sales are rising in every region across England and Wales, with the strongest increases seen in the West Midlands, followed by Wales and London. The most subdued increases have been seen in the North West and Yorkshire and Humberside.In terms of prices, the seasonally-adjusted net price balance of surveyors reporting rising rather than falling prices improved from 6% in July to 11% in August, which is the highest reading since May 2007. From a regional perspective, the net price balance is now positive in London, the South East, the South West, East Anglia, the North West and Scotland. The weakest net price balances are in Wales, Yorkshire and Humberside and the West Midlands.
Overall, surveyors remain positive about the sales outlook, with those in the North West most confident, followed by those in the South East, Wales and the North.
