Member Article

North East housing market looks optimistic

The North East housing market looked more optimistic during February, as transactions continued to edge upwards.

The latest RICS UK Housing Market Survey indicated that expectations for future prices had increased to a net balance of -26% from -40% in January, the strongest reading since June 2011.

The average number of sales per surveyor increased to 16, the most positive reading since May 2010. While this remains at a historic low, it does correspond with a gradual improvement in activity which has been witnessed in recent months.

Alan Collett, RICS housing spokesperson, commented: “With the recent upturn in activity brought on by the end of the stamp duty holiday, it seems that a renewed sense of optimism may be very slowly returning to the North Eastern property market. While far from upbeat, chartered surveyors’ price predictions were slightly more optimistic in the region during February.

“However, with affordable mortgage finance still out of reach for many potential first time buyers, it remains to be seen whether the more optimistic outlook for future sales can be sustained beyond the expiry of the stamp duty holiday.”

Despite an increase in sales, sales fell again during February, with 15% more chartered surveyors reporting falls rather than rises during the last month.

Potential buyer interest also remained flat, with a net balance of 3% more respondents reporting decreases in demand. This was attributed to issues accessing affordable mortgage finance, which is shutting many first time buyers out of the market.

New instructions also remained flat, with 3% more surveyors reporting a fall rather than a rise in new houses coming onto the market over the next 3 months.

Peter M. Hayward, Hayward Tod Associates Ltd, Carlisle added: “After a busy end of year things were a little quiet regarding instructions, but now with lighter nights progress is being made.

“Things may be looking up in 2012, now the public have got used to the market place. Demand for family-sized rental homes remains high.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .