Bridging Finance News:-Estate agents have reported a 10 per cent increase in new buyer interest for June according to the Royal Institution of Chartered Surveyors, RICS, residential market survey.
Newly agreed sales net balance was +2 percent in June marking the first time in ten months where participants did not report a decline.
RICS said the new instructions indicator had now edged into positive territory for the first time in a year. But warned supply was still an issue as estate agents had record low stock levels and lower appraisals than last year.
Sales expectations for the coming three months suggested the stable trend is likely to continue. Further ahead 12-month sales expectations were also more positive.
RICS chief economist, Simon Rubinsohn, said: “The latest data provides further evidence of the sales market settling down but I don’t get the impression from the insight provided by contributors that this is fuelling hope of a significantly more active market going forward.”
Contributors reported a stable trend in national house price inflation continuing over the next three months. All parts of the country, except London, were showing results of a modest house price growth.
Regional house prices forecast to increase
A balance of 25 per cent more respondents were anticipating price rises within the next 12 months – the highest reading for this indicator in 11 months.
Bridging Finance by HZA
Brokers Hank Zarihs Associates said this was good news for house builders who would be well placed to gain construction loans and fast bridging finance at competitive rates.
There was a fall in landlord instructions pointing to a drop in supply of rental properties coming on the market for the 20th month in a row. On the back of the deteriorating imbalance between solid tenant demand and supply, rent expectations pointed to a further pick-up in the coming year.
Average five-year projections imply rental values were expected to rise by 3.6 per cent per annum surpassing house prices, which were seen rising by 2.7 per cent on the same basis.
The survey polled more than 300 estate agents in more than 600 branches last month.