Estate Agents Signs

12% of estate egents have reported rising sales in January, reports the Royal Institution of Chartered Surveyors.

Although house sales edged up last month (January) as new first time buyers are looking to beat the stamp duty free time window the average sale price for a house in the UK is falling as reported by 16% of estate agents.

Rics housing spokesman, Michael Newey said: "Many problems with the market still exist and the lack of affordable mortgage finance is still preventing many from getting on to the property ladder."

The biggest housing price declines have been reported from Wales, closely followed by the West Midlands, East Midlands and Yorkshire and Humberside.

However, the strongest area for newly agreed sales in January was in the West Midlands and East Anglia, with only the North West and Yorkshire and Humberside reporting a decline. The improved sales led to a lift in optimism over prospects in the near term as 19% of surveyors predicted transaction levels to perk up over the next coming months, in the strongest reading since May 2010.

The survey said the supply of homes was relatively steady during January, with 7% more surveyors reporting increases rather than decreases in new homes coming onto the market. Despite the improved level of sales, overall new buyer demand dipped slightly in the first month of the year, as new buyer inquiries fell in January.

This demonstrates that the recent lift in activity has been driven by one-off factors, such as the drive to take advantage of the stamp duty holiday. Despite a relative upturn in interest from some first time buyers prior to the end of the stamp duty holiday, surveyors report that lack of affordable mortgage finance continues to hold back the market, Rics said.

Tuesday February 14^th 2012
The Onlines