South West house sales hit six year high

The number of house sales in the South West has reached its highest point since 2007 according to a survey by the Royal Institute of Chartered Surveyors (RICS).

The survey showed that sales in December were more than double that f the lowest point of the downturn.

Prices are also rising with a net balance of 56 percent more chartered surveyors reported growing prices in the South West.

Significantly, every area of the UK saw prices increase with London and the South East experiencing the biggest jumps.

RICS claim that the figure calculated by sales per chartered surveyor indicates that the market is continuing a strong recovery and predict the sales figures will continue to grow.

Roger Punch, RICS Residential Spokesperson for the South West, said:“The recovery in the South West housing market continues with the sales hitting the highest level in over six years, in some parts of the region, showing continued confidence in the market. The picture, however, does vary across the region with local employment factors having a significant influence. Price levels still remain below the 2007 high in many areas.

“Sellers would be wise to take professional advice not only regarding pricing, taking into account their particular locality, but also in the management of their sale in a potentially challenging market, as the strong activity continues.

“Overall, we have the best market we have experienced for many years, and both buyers and sellers should gain confidence from this.”

The latest house price survey from the Office for National Statistics showed that year-on-year property price growth stood at 5.4% in the UK in November.

Excluding London and the south east of England, the ONS said prices were up by 3.1%.

The Bank of England has recently pulled back from offering cheaper funds for lenders to hand on in mortgages through the Funding for Lending scheme.

However the amount of homes coming onto the market still nowhere near enough to meet the higher level of demand, prices continue to rise across the region.

Peter Bolton King, RICS Global Residential Director, commented: “The housing market is starting to thrive once more. Sales are at their highest level in almost six years and this is being reflected right across the UK.

“Growing availability of affordable mortgages has released some pent-up demand from a market that, in recent years, has seen many viable buyers unable to enter the market.

“On the face of it, this seems like good news but unless we see a marked increase in the number of homes coming up for sale we could well be looking at a price rises becoming unsustainable in some areas.”