Home Buyer Interest Increases, But Sale Levels Still Low
Since Christmas last year, there has been a continuous and steady increase in the level of interest from individuals looking to buy property and now that we are approaching spring and lighter evenings, it is likely that interest will increase further, as this is a traditionally good time of year for house sales.
The latest figures from the Royal Institute of Chartered Surveyors (RICS) have revealed that 20 per cent of surveyors across the country have seen an increase in activity rather than a decrease. Compared with 15 per cent in January and in London and the South East this figure has risen to 44 per cent form 25 percent previously.
Although interest from potential buyers is on the increase, this has not yet worked through the system into completed sales and homeowner loans. According to RICS, completed sales and new loans remain at the lowest levels since 1978. The most likely reason for this is the lack of availability of suitable funding through a homeowner loan or mortgage. Even a buyer with a substantial deposit to put down on a house purchase and a good credit rating is still having difficulty in obtaining a loan.
A spokesman for RICS said “Potential buyers continue to come through estate agency doors, but without mortgage finance transactions are likely to remain close to all time lows. The lengthy process of obtaining mortgage finance, even for those with a large deposit, is contributing towards the blockage in the market place. Family homes remain in demand but flats are proving harder to sell in many areas as first time buyers are struggling to gain a foothold on the property ladder.”
The general view from surveyors is that they expect interest to continue increasing over the coming months, but until banks and building societies start to offer loans to customers again, sales figures are likely to remain low.
