Buyer demand climbs in November

This is the first time since spring 2010 that the increase in buyer enquiries has been in positive territory for three months in a row.

Bur some 17% more chartered surveyors reported price declines rather than increases in November.

New buyer enquiries per surveyor saw a modest improvement in the level of transaction activity with newly agreed sales surging from nine to 14 on average from October and November.

The average number of sales per surveyor climbed to 15.4 in the three months to November.

Nearly nine out of 10 surveyors cited uncertainty in the economy as the reason why the housing market was being held back.

Availability of mortgage finance was second in the list of factors curbing growth at 70% while fear of house price falls was at 42%.

Price expectations barely changed with 21% more surveyors expecting further falls than rises while the net balance for sales expectations remained positive albeit low at +5%.

Alan Collett, housing spokesman at RICS, said: “It is encouraging that buyer interest has edged upwards in the face of the endless diet of negative news from Europe and the turmoil in financial markets. However a meaningful recovery still seems some way off.

“While the proposed mortgage indemnity scheme is clearly likely to provide some assistance for the market and is to be welcomed, its focus on the new build sector will inevitably mean that it only offers support for a relatively small share of the market.”