UK home prices to remain flat even though market activity is improving; in October, buyer demand rose at fastest rate for nearly three years, find survey

Allison Oesterle

LONDON , November 20, 2012 (Mortgage Strategy) – UK house prices remain flat but market activity is seen to be improving, according to the latest UK housing market survey from the Royal Institution of Chartered Surveyors.

Buyer demand rose at the fastest rate for almost three years in October, despite 67 per cent of surveyors reporting no change in house prices and just 7 per cent reporting a fall.

The North-east and the West Midlands were subject to the most notable rises in demand, according to the report.

New buyer enquiries improved during the month, according to 18per cent of respondents, although the number of houses sold remained relatively unchanged compared with September.

UK surveyors sold an average of 15.2 homes in October, up from 14.9.

The supply of homes coming into the market rose at its fastest rate since April 2011 as 12 per cent of survey participants witnessed increases in the number of properties being placed on the market.

Rics housing spokesman Ian Perry says: "The number of potential buyers going out and viewing property saw a wel-come boost last month.

"It seems that with Christmas around the corner, those people who are in a position to buy decided to get out there and see what is available."

But he adds that overall activity is still low in most parts of the country and what the market desperately needs is for this to translate into actual sales.

He says: "With the Autumn Statement around the corner, we would like to see the Government continuing to focus on deliver- ing new homes and encouraging the banks to lend at afford- able levels."
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