Region’s housing market on road to recovery – RICS

THE housing market in Yorkshire and Humber appears to have finally turned a corner as more buyers continued to return to the market last month, figures released today reveal.

The latest Royal Institution of Chartered Surveyors (RICS) Residential Market Survey shows that during July, the amount of potential buyers looking to enter the market grew as a net balance of 67% more chartered surveyors in the region reported increases in demand (up from 53% in June).

In tandem with rising buyer confidence, more potential sellers in Yorkshire and Humber looked to test the market and put their homes up for sale.

Last month, 38% more respondents in the region reported rises rather than falls in new instructions, up from 24% in June. This reading has now been in positive territory for the last four months. However, for the previous three months it has been outstripped by the growth in new buyer enquires.

The number of homes sold in the region also increased last month, with 47% more surveyors reporting a rise rather than a fall in newly agreed sales, compared with 18% back in June.

Significantly, this improved market activity was seen in each and every part of the UK as the recovery, initially focused in the South East, spread to regions across the country. The West Midlands and the North East – areas which have suffered more than most since the market crash – experienced the biggest increases in buyer activity in July.

Consequentially, prices rose in the country for the fourth consecutive month and grew at their fastest rate since the market peak of November 2006. Notably, this was not only confined to more affluent parts of the country such as London, but every region, including Yorkshire and Humber, saw growth as we enter the end of the summer period.

Looking ahead, it seems that prices across Yorkshire and Humber are going to continue to rise further, with a net balance of 32% more surveyors predicting increases. Meanwhile, transaction levels are also expected to grow, as 54% more respondents expect sales to rise rather than fall over the coming three months.

Alex McNeil of Bramleys estate agents, which has offices in Huddersfield, Mirfield and Halifax, said: “We have seen an increased level of activity in recent months, leading to a feeling that a corner has been turned with improved market sentiment which is having a positive impact on local buyers and sellers.”

Peter Bolton King, RICS global residential director, added: “These results are great news for the property market in Yorkshire and Humber as it looks like at long last a recovery could be around the corner. Growth in buyer numbers and prices have been happening in some parts of the country since the beginning of the year but this is the first time that everywhere has experienced some improvement. It is clearly good news that those parts of the property market that were struggling are at last showing some signs of life.”