Sales rise prompts housing market optimism

Moderately good news for the housing market has arrived in the form of the latest survey from RICS UK Housing which shows that house sales increased by a very slight margin in January – attributable in the main to first-time buyers rushing to beat the stamp duty holiday expiry date on 24 March.

After this date, first-time buyers will not be exempt from stamp duty on properties valued under £250,000 and this fact, say surveyors, has led to greater activity at the lower end of market.

Survey respondents are optimistic about prospects in the short to medium term, 19% of surveyors believe that house sales will continue to increase beyond the first quarter of 2012 – the strongest figures since May 2012 says RICS.

New buyer demand, in contrast, fell slightly in January due to the lack of affordable mortgages reported 7% of respondents.  

 “With first-time buyers no longer exempt from stamp duty as of the end of March, it seems that some are looking to purchase homes before the deadline and, as a result, surveyors are relatively optimistic for the coming months,” said RICS Housing Spokesperson, Michael Newey.

“However, many problems with the market still exist and the lack of affordable mortgage finance is still preventing many from getting onto the property ladder. Prices are still falling across most parts of the country, but expectations for future prices have become less pessimistic.”