16th Jan 2014 13:42
LONDON (Alliance News) - The number of UK homes sold per chartered surveyor reached its highest point since March 2008 last month as the housing market continued to show signs of recovery, latest data showed Thursday.
In December, the average number of transactions per surveyor reached 21.3, more than double the lowest point of the downturn back in January 2009, when the Royal Institution of Chartered Surveyors (RICS) found 9.8 homes sold per surveyor.
With more sales now going through, growth in demand for rented accommodation has begun to slow significantly as a growing number of renters opt to test the sales market, the industry body said.
It said increased confidence among buyers is a key driver behind growing activity.
Despite an increase in sales, the regulator noted that the number of homes coming onto the market is still nowhere near enough to meet the higher level of demand.
This comes as a number of housebuilders this week said they had increased the number of homes built.
Bovis Homes Group PLC said Thursday the number of new homes being completed was rising in addition to a rise in the number of forward sales.
Like its peers Taylor Wimpey PLC and Barratt Developments PLC, Bovis remained positive for 2014 regarding an increase in sales and prices, which was echoed by surveyors.
Surveyors cited an easing in credit conditions, resulting in higher loan to value mortgages and the ongoing imbalance between supply and demand.
"Growing availability of affordable mortgages has released some pent-up demand from a market that, in recent years, has seen many viable buyers unable to enter the market," RICS Global Residential Director, Peter Bolton King, said.
"On the face of it, this seems like good news, but unless we see a marked increase in the number of homes coming up for sale we could well be looking at a price rises becoming unsustainable in some areas,? he added.
Bovis Homes shares were down 0.2% at 839.50 pence Thursday, while Taylor Wimpey shares were down 1.1% at 116.50p and Barratt shares were off 0.5% at 383.60p.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
Copyright © 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
Bovis HomesBarratt DevelopmentsTaylor Wimpey