Interest in the market increased for the fourth consecutive month. Around 20% more chartered surveyors reported a rise than a fall in new buyer enquiries, up from 15% in January. Interest is strong in nearly every region with London and the south of England leading the way. In fact interest in London reached levels not seen since October 2006 – 44% more chartered surveyors reported a rise than a fall in new buyer enquiries in London, up from 25% in January. The rise in interest reflects both the drop in asking prices and continued interest rate cuts. As house prices fall, those with finance are looking to pick-up up bargains
However, this pent up demand has not yet translated into sales. The average number of transactions per agency (over the last three months) is now at 9.5, a drop from 9.8 in November, and the lowest figure since the survey began in 1978. London agents are experiencing the worst transaction levels with, on average, only six properties sold per agency over the past three months. The balance of surveyors reporting house price falls increased slightly in February with 78.3% more chartered surveyors indicating a fall than rise in house prices, from 76.6% in January.
Despite depressing repossessions data, the net balance of surveyors reporting new instructions to sell remains in negative territory indicating that supply is very tight. In the current market, a lack of mortgage finance and weak economic conditions are restricting the ability of many to consider the option of entering the market. However, surveyors remain optimistic that sales will pick up in the coming months as 11% more chartered surveyors expect sales to increase in the coming three months than in January.
