Owner-occupiers are returning to the housing market looking for bargains, according to research published by the Royal Institute of Chartered Surveyors (RICS), as many potential purchasers believe that the market has reached a bottom although first-time buyers are still being priced out of the property market.

Following three successive monthly increases in the RICS’ new buyer enquiry series, RICS has asked further questions of its members to determine what is underpinning this sustained pick up in interest. Some 71% of chartered surveyors stated that lower house prices were responsible for the growth in enquiries while 48% believed that buyers are increasingly convinced that the bottom of the market is insight. Only 35% of surveyors believe that lower mortgage rates are tempting buyers. Meanwhile, just 15% referred to positive personal circumstances overwhelming negative macro concerns.

Around 74% of chartered surveyors reported that existing owner occupiers are driving the renewed level of interest while 38% of surveyors indicated that investors are coming back into the market. However, only 23% of surveyors thought that first-time buyers are a factor in the market. In addition, almost one in ten respondents suggested that overseas buyers were now looking for opportunities in the UK residential market, benefitting as they are, from favourable currency movements.