Sellers return to the South West housing market in record levels

Rising prices and burgeoning buyer demand have led to significant increases in homes coming onto the South West property market, says the August RICS Residential Market Survey.

During August, 68 percent more chartered surveyors reported increases not decreases in new instructions in the region (from +42 percent in July). This is the highest number since RICS started to record these indices in the South West, and with positivity starting to return, it seems that those who may have been waiting for the right time to sell are choosing now to do so.

The number of would-be buyers also increased sharply during August, as increasingly accessible finance allowed more people to enter the market. A net balance of 66 percent more respondents reported growing numbers of enquiries from potential buyers last month, which is again the highest number since RICS started to record these indices in the South West.

Perhaps unsurprisingly, price increases became more widespread, as 40 percent more surveyors reported rises rather than falls across the UK. This is the highest reading since November 2006 and demonstrates the extent to which the market is starting to recover.

Looking ahead, it seems that recent price rises in the region, and across the UK, are going to continue unabated. A net balance of 35 percent more surveyors expect further price growth in the South West over the next three months as the market continues find its feet - this is the highest level since June 2006.

Roger Punch, RICS Residential Spokesperson for the South West, said:

“We are seeing the recovery in the South West housing market continue.  The renewed confidence in the market has brought a rise in sellers coming to the market, with a continued rise in new buyer enquiries. House prices in some parts of the region are expected to continue to rise, with the number of surveyors predicting price increases at the highest level since June 2006.

“With such a diverse region, some areas, while recovering, are still affected by many properties that remain overpriced and some sellers need to adjust their sights in order to take advantage of the current potential.

“The various initiatives designed to encourage potential buyers into the market are clearly paying dividends and it is important that the government continues to support the delivery of low cost, and new housing available to the market.”