Boost for local housing market

STRONG performance in the North West’s property markets looks set to continue throughout the year, according to the Royal Institution of Chartered Surveyors.
Their latest residential market survey reports higher than average expectations of sales and price rises.
Although the average number of transactions per surveyor in the North West slipped slightly from its October high of 25 to 22, this still represented a huge improvement from the lowest point of the downturn back in February 2009, when respondents were selling just nine properties per surveyor.
With more sales now going through, growth in demand for rented accommodation has begun to slow significantly as a growing number of renters opt to test the sales market. Respondents note that increased confidence is a key driver behind growing activity.
Across the UK, RICS found average transactions per surveyor rose to 21.3, up from 9.8 at the national post-financial crisis trough of January 2009.
Meanwhile, the amount of homes coming onto the market is still nowhere near enough to meet the higher level of demand, causing prices to continue to rise.
Expectations for this year are decidedly upbeat, with respondents across the North West predicting continuing improvements throughout the year.
A net balance of 69 per cent predict rising sales, while 75 per cent expect prices to rise – far higher than the national averages of 58 percent and 61 percent, respectively.
The strong outlook for prices and sales is largely being driven by an easing in credit conditions, resulting in higher loan to value mortgages, and the ongoing imbalance between supply and demand.