Mortgages  

Surveyors reporting price rises hit 11-yr high

The proportion of chartered surveyors reporting price rises hit an 11-year high in October, as the net balance of respondents reporting increases jumped to 57 per cent.

The latest Royal Institution of Chartered Surveyors poll found surveyors across the country noting that while Help to Buy is boosting buyer numbers, a lack of new instructions from vendors is proving problematic.

With the market continuing to grow across the UK, the number of homes sold saw a big jump last month.

Article continues after advert

In the three months to October, chartered surveyors sold an average of 20.3 homes, the highest amount since February 2008.

Almost every region of the country saw transaction levels increase which further demonstrates that the recovery is spreading beyond the traditional economic powerhouse of London and the south east.

Yesterday (11 November), the government published statistics revealing that Help to Buy attracted 2,384 applications in one month, totalling £365m of new mortgage lending.

Ray Boulger, senior technical manager at broker John Charcol, previously told FTAdviser that Help to Buy reservations for properties are around 2,500 per month and, if reservations continue at this current rate, the scheme will not last beyond two years.

Simon Rubinsohn, chief economist of Rics, said: “It is no secret the housing market is gathering some momentum and that buyer numbers are on the rise right across the country.

“A greater willingness by lenders to increase loan to values on mortgage products allied to the Help to Buy scheme has meant that more and more first time buyers are in a position to enter the market.

“In spite of this, the amount of homes currently up for sale is still nowhere near enough to keep up with demand and – in order for the market to function correctly – this imbalance urgently needs to be addressed.

“Housebuilding starts have picked up recently but we are still well behind in terms of the amount of properties needed. If we are to create a more sustainable market, it is critical that many more good quality homes are built in areas where people want to live.”