Property sales are to life as hopes rise for end to falling

Homebuyers are out in force and property sales have begun to rise, according to new figures.

The Royal Institution of Chartered Surveyors (RICS) said that the number of new buyer inquiries rose for the fifth consecutive month in March and at the fastest pace since September 2003. The increase in demand led to a rise in sales, raising hopes for an end to falling house prices. The price of an average property has dropped by about 20 per cent since the 2007 peak.

Figures from the Council of Mortgage Lenders (CML) showed a 4 per cent rise in the number of mortgages approved between January and February. However, the number of approvals, at 24,300, was 47 per cent lower than the same period last year and about a third lower than the February average. The total value of mortgages in February was £3.1 billion, down 55 per cent on the same time last year but unchanged since January.

Ian Perry, a spokesman for the RICS, said: “Buyer interest is starting to gain momentum but will remain frustrated while mortgage finance is scarce. Accessibility for first-time buyers is likely to remain difficult.”

The RICS figures, based on a monthly survey of chartered surveyors in England and Wales, showed that interest from new buyers was strongest in London, where 63 per cent more surveyors reported a rise than a fall in new buyer inquiries, up from 46 per cent in February. Overall, 31 per cent more surveyors reported a rise than a fall in new buyer inquiries, up from 21 per cent in February.

But the increase in interest has not been matched by a rise in the number of properties coming on the market. The number continued to decline, dropping to the lowest level since September 2007. Constraints on supply were expected to contribute to the stabilisation of prices, the RICS said.

The most recent house price figures from Nationwide and Halifax showed a 0.9 per cent increase and a 1.9 per cent fall respectively for last month.

The CML said that the number of first-time buyers rose by 7 per cent in February, as prospective homeowners bought bargain properties. But the total number of first-time buyers, 9,400, was still down on the 17,400 last year.