Buyer interest on the up according to RICS - 15/04/2009

Author: Michael Aglony Posted on: 15 April 2009

Enthusiasm amongst buyers is gaining momentum as new buyer enquiries rise for the fifth consecutive month, the latest data from the Royal Institution of Chartered Surveyors reveals. Some 31% of chartered surveyors reported an increase in new buyer enquiries during March, up from 21% in February.

Buyer enthusiasm in London was particularly strong with 63% of surveyors seeing enquiry levels pick up in March, compared with 46% the previous month.

RICS says this interest is starting to filter through to sales, although transactions remain at historically low levels.

Supply of properties for sale also remains limited as surveyors report the level of new instructions remains in negative territory.

A spokesman for RICS says: “"Buyer interest is starting to gain real momentum but will remain frustrated while mortgage finance is scarce.

“Surveyors are optimistic that transaction levels will increase, especially for those with the finance to purchase family homes.

But he adds: “The market is still in a fragile state but with demand continuing to pick up there may be more signs of stabilisation in the coming months"

This could mean the market is bottoming out and that fixed rates for Buy to Let mortgages and Residential mortgages could be as low as they are going to get, particularly with Base Rate remaining at unchanged for the first time in a succession of cuts.

Author: Michael Aglony