Fewer homes for sale in the West Midlands

The latest report from the region's chartered surveyors found that new instructions and buyer enquiries continue to decline in the region.

According to the May 2017 RICS (Royal Institute of Chartered Surveyors) UK Residential Market Survey, the sheer lack of supply continues to worsen in the West Midlands.

But, alongside the further drop in new sales instructions, the trends are keeping prices growing.

John Ozwell, of Hunters in Solihul, said: “Prices are getting to the point of being too high and those homes which are highly priced are starting to stick. Correctly priced family or period property continue to draw in new buyers and sell within three to four weeks. The Midlands market is strong but there are signs to show it is starting to ease.”

Meanwhile, figures from the Halifax show that nationally house price growth is running at around a third of the levels seen in spring last year.

Property values across the UK increased by 3.3 per cent annually in May, the lowest annual rate since a 2.6 per cent increase in May 2013, Halifax said.

The 3.3 per cent increase is a third of the 10 per cent rise seen in March last year.

There has been "virtually no change" in house prices over the last three months, Halifax said. Property values increased by 0.4 per cent month-on-month in May, to reach £220,706 on average across the UK.

Martin Ellis, a housing economist at Halifax, said: "The fact that the supply of new homes and existing properties available for sale remains low, combined with historically low mortgage rates and a high employment rate, is likely to support house price levels over the coming months."

Samuel Tombs, chief UK economist at Pantheon Macroeconomics, said May's Halifax data should allay concerns that house prices are on a downward spiral.

He said: "Admittedly, average prices still are 0.7 per cent below their December 2016 peak, but Halifax hasn't reported a month-to-month decline in prices since January.

"Recent further falls in mortgage rates are helping home buyers to take out slightly larger loans, even though their real wages are falling."

Halifax pointed to recent HM Revenue and Customs (HMRC) figures showing sales fell by three per cent between March and April.

It said Bank of England figures have shown the volume of mortgage approvals for house purchase - indicating completed sales - fell by two per cent between March and April.

Meanwhile, in the West Midland's property lettings market, tenant demand is flat, with momentum fading over the course of the year. At the same time, landlord instructions continue to fall with 31% reporting a decline in new instructions coming onto the market. Once again, the battle between supply and demand leads to chartered surveyors expecting further rent rises in the coming three months