The amount of homes sold in the East Midlands over the past three months reached their highest level since November 2012 as buyers across the region began to return to the market, says the latest RICS residential market survey.
Chartered surveyors in the East Midlands sold on average, 21 properties during the three months to May. While low compared to the market peak of seven years ago, this still represents the highest reading since November 2012. Furthermore, sales are expected to continue to rise over the next three months with a net balance of 26 percent more chartered surveyors predicting sales levels will grow (from +17 percent).
A key driver behind this jump in activity is the recent increase in buyers testing the market. Interest from would-be buyers has now risen for four consecutive months and, during May, 23 percent more chartered surveyors in the region reported rises rather than falls in new buyer enquiries. This is a sign that market confidence is gradually being restored in the region.
Meanwhile, respondents in the East Midlands reported an increase in new housing stock coming onto the market. 15 percent more chartered surveyors in the East Midlands reported rises rather than falls in new instructions during May.
However, with demand and supply keeping pace with one another, prices are unlikely to alter much over the coming months.
Moving on to the rental market, tenant demand continued to rise during May, with a net balance of 21 percent of respondents reporting rises, although the rate of growth has begun to slow in the last few months. Even so, respondents to the survey predict further rises in rents over the coming three months.
Peter Bolton King, RICS Global Residential Director, commented: “May was an interesting month for the housing market. More people decided to get out there and view property and more transactions went through than in quite some time. Most encouragingly of all, though, is that stability is not confined purely to the South East, as has been the case, but is now starting to extend to areas right across the country. There Is still a very long way to go until we see a full scale recovery but green shoots are beginning to sprout.”