Spring bounce for housing market
The housing market in the West Midlands enjoyed a spring bounce in April, with both property prices and sales levels rising, research showed today.
The housing market in the West Midlands enjoyed a spring bounce in April, with both property prices and sales levels rising, research showed today.
The Royal Institution of Chartered Surveyors said housing market sentiment "rebounded" across the UK during the month, helped by better weather.
Nationally around 17 per cent more chartered surveyors reported house price rises than those who saw a fall during the month, up from just nine per cent in March.
The balance of surveyors reporting newly agreed sales also turned positive for the first time this year at 12 per cent, up from minus eight per cent during the previous month.
London led the upsurge and there was also good news in the West Midlands, with six per cent more surveyors reporting a rise rather than a fall, up from a negative eight per cent last month.
Across the UK regions there were house price rises everywhere, except for Wales and Yorkshire and Humberside.
Bed Hudson, West Midlands RICS spokesman, said: "For much of 2010 the housing market has been under the shadow of the General Election, with the gap between supply and demand growing wider as potential house buyers opted to stand on the sidelines awaiting the outcome of the poll.
"However, the start of spring has seen renewed optimism with the good weather improving sentiment and surveyors hope to see an increase in both sales and house prices. "The housing market often sees an increase in new instructions in the early part of the year with sales boosted in the spring and this year has been no exception."
There was further evidence that the mismatch between supply and demand, a key factor behind 2009's price rises, is easing.
A balance of 11 per cent of surveyors reported a rise in the number of new homes being put up for sale in April, while only eight per cent reported an increase in inquiries from new buyers, although that was the highest level since December.
Activity levels are expected to continue increasing over the coming months, with many surveyors expecting the market to gain momentum following the General Election.
It comes after figures also revealed that the number of mortgages approved for house purchases nationally is edging up.
A total of 34,905 loans were approved by the major banks during March for people buying a new property, according to the British Bankers' Association.
The group pointed out that although the figure appeared subdued compared with the number of approvals seen during the final months of 2009, peaking at a 27-month high of 45,823 in December, it was still 20 per cent ahead of the level from March last year.
Halifax housing economist Martin Ellis said: "There are signs that an increase in the number of properties available for sale is beginning to reduce the imbalance between supply and demand.This should help to contain the upward pressure on house prices."
