Homebuyer demand is beginning to pick up for the first time since February as confidence returns to the market following post-referendum jitters, according to surveyors.
The Royal Institute of Chartered Surveyors said 8% more chartered surveyors reported an increase in buyer enquiries during September, a marked improvement on June when a net balance of 34% of respondents reported a drop.
Simon Rubinsohn, RICS chief economist, said: “The market does now appear to be settling down following the significant headwinds encountered through the spring and summer.
“Buyers do appear to be returning, albeit relatively slowly, but the big issue that continues to be highlighted by respondents is the lack of fresh stock on the market. Although this is not a new story, it is a significant one having ramifications for both prices and the level of turnover.”
RICS said that the number of new homes coming on to the market had now fallen for the past seven months in a row.
As a result of the drop in housing supply and increase in demand prices are being pushed upwards.
RICS said: “This drop in new properties coming to the market continues a pattern that extends back to the middle of 2014 with a brief exception around the turn of the year when some vendors saw opportunity linked to the April hike in stamp duty for investors.”
As a result, the average level of stock on estate agents books remains close to historic lows of just over 45 properties.
A net balance of 17% more chartered surveyors reported an increase in prices than a fall in September, up 13% in August.
While most other parts of the UK saw prices climb higher over the month, they continue to fall in Central London and the North East.
“Central London remains something of an outlier with contributors telling us this is the one part of the market where there may be further give on prices in the near term. Elsewhere the price trend still seems on the up,” said Rubinsohn.
RICS said that anecdotal evidence suggests that uncertainty following the EU referendum along with stamp duty changes would continue to adversely impact the top end of the market in particular.
Over the next three months house prices are predicted to rise a further 14%, the strongest reading since March.
Richard Sexton, director of e.surv, said: “These sentiment results show confidence within the housing market has remained generally resilient. The recent figures from CML revealing increases in both remortgage levels and lending, particularly to first-time buyers, are a clear indication that the lending market remains active.
 “However, the imbalance between supply and demand continues to put an upward pressure on house prices. Although more first-time buyers are entering the market, until more new homes are built properties will remain unaffordable to many. The government and the industry need to work together to address this issue if we are to see this confidence remain over the longer term.”
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