Rise in new buyer enquiries is being outstripped by increase in housing supply, say surveyors
The number of home buyers increased in February following the weather-related dip of January, according to the latest figures from the RICS.
Seven percent more chartered surveyors reported a rise than fall in new buyer enquiries compared with the previous month up from a negative reading of 20%.
However, the number of new homes coming on to the market also increased, outpacing new buyer enquiries for the second consecutive month – the first time this has happened in two years. A net balance of 15% of surveyors saw a rise in new instructions which compares with a negative balance of 5% in January.
House price rises appeared to slow, with only 17% more chartered surveyors reported a rise than a fall in house prices, down from 31% in January.
RICS spokesperson, Jeremy Leaf said: “Most market indicators are still positive and consistent with further house price increases. However the magnitude of the gains going forward is likely to continue to ease reflecting the fact that new supply coming onto the market is starting to outstrip fresh demand.”