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Surveyors are optimistic about sales

New enquiries in the market increased for the sixth consecutive month with 41% more chartered surveyors reporting a rise than a fall in new buyer enquiries, up from 32% in March, according to the Royal Institute of Chartered Surveyors’ (RICS) latest housing market survey .

In London, 70% more chartered surveyors reported a rise than a fall in new buyer enquiries in London, up from March’s 63%.

Some of this interest translated into sales but transactions still remained at low levels. Surveyors sold an average of 10.6 properties over the past three months, up from 9.7. Also, the balance of newly agreed sales continued to rise and surveyors in most regions now expect this trend to continue. This is the first time that surveyors have been universally optimistic about sales since August 2006.

The net balance of surveyors that reported house price falls eased again with 59.9% more chartered surveyors reported a fall than rise in house prices, from 72.1% in March.

Jeremy Leaf, RICS’ spokesperson, said: “There are tentative signs that the market is starting to pick up but transactions remain at very low levels and we are unlikely to see significant improvement while money remains in short supply and the employment picture is uncertain.

“Transaction levels could benefit from an increase in supply but falling prices and low interest rates are discouraging sellers as is the latest change in HIPS’ legislation. House prices could stabilise in the coming months but prospective purchasers – and first-time buyers particularly – will continue to encounter challenges while banks maintain current loan-to-value ratios and make accessibility difficult even for those who have accumulated considerable equity in their existing properties.”

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