Housing supply declines for fourth month

The average number of homes sold per chartered surveyor has hit its highest level since February 2008 but new housing supply has seen a fourth consecutive monthly decline.

This is according to the latest RICS Residential Market Survey which shows that 26% more chartered surveyors reported increased agreed sales in April.

The latest figures from RICS reveal a constrained property market, which “continues to be marred by weak supply and high demand”.

While respondents across nine UK regions reported declines in new property for sale coming onto the market, the average number of homes sold per surveyor hit 23 – the highest since February 2008.

Respondents to the survey also reported that the average ‘perceived’ loan-to-value ratios among first-time buyers climbed to 86% and potential new buyer demand remained firm with 20% more chartered surveyors reporting an increase in new enquiries.

Significantly, RICS said its survey shows there does now appear to be not just a broadening out in the recovery away from the capital, but also increasingly upbeat responses on the likely price trend going forward.

In the North West, 62% more chartered surveyors predict prices will rise over the next three months rather than fall, and in East Anglia the figure is 57%.

By comparison in London 49% more respondents conveyed similar expectations (down from 61% in March).

In the rental sector, there continued to be modest growth in tenant demand although greater mortgage availability and the Help to Buy scheme have seen the appetite to rent lose some momentum in recent quarters according to RICS.

Even so, the shortage of property also continues to be felt in this area, with new landlord instructions broadly flat and rent prices over the next 12 months expected to increase by around 2%.