Relatively low numbers of new properties coming up for sale has been holding the market back in recent months.
However, during August, 26 percent more chartered surveyors reported increases not decreases in new instructions (from +16 percent in July). With positivity starting to return to areas right across the UK, it seems those who may have been waiting for the right time to sell are choosing now to do so.
However, although supply did jump considerably last month, it did not rise sharply enough to keep pace with the sheer weight of demand. During August, the number of would-be buyers increased yet again 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.
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.
Across the country, each region saw supply increase as the recovery continues to spread from the South East of England to other areas. The South West and the North East, in particular, saw the number of new homes coming onto the market rise significantly.
Looking ahead, it seems that recent price rises are going to continue unabated. A net balance of 45 percent more surveyors expect further price growth over the next three months as the market continues find its feet.
Peter Bolton King, RICS Global Residential Director, said:
"It's not surprising that more and more people are looking to sell their homes. The buyers are out there and prices are on the up so if you're looking to move it's a good time to do so. What we don't wish to see, however, is prices rise to such an extent that they become unaffordable. For the market to work properly, it's vital that property is both accessible and affordable, and we'll be monitoring the situation very carefully as the housing sector continues to recover."
Ben Thompson, MD Legal & General Mortgage Club commented:
"More positive figures reflect the improving picture in the UK housing market. It is hard to tell whether it was the Government's Funding for Lending Scheme or Help To Buy that has assisted the recovery, in reality both have very definitely played their part.
"Perhaps more encouragingly, it appears as though consumer confidence has most definitely picked up, and this is very good news. Positive sentiment and confidence (to make a large commitment like buying a new home) make for a more sustainable and healthy recovery.
"As the recovery spreads slowly into more regions, the focus will inevitably turn towards rising house prices and how steep rises can be avoided. In many regions house prices remain below their 2007 peak, so no need for concern yet, however we urge the Government to explore as many ways as possible to assist the rapid expansion of house building in the UK, to ensure prices in the medium and longer term can become more affordable for more people."
