Housing market remains positive despite supply outstripping demand - property investment

Tuesday, March 09, 2010

Planning and development of housing may outstrip demand but experts indicate "positive" outlook

By Ashley Brunskill

The UK housing market is said to be showing "positive" signs as February figures revealed more interest from potential buyers showing an interest in property investment.

The Royal Institute of Chartered Surveyors (RICS) said that after a "weather skewed dip" in January, new buyer enquiries increased during the last month.

According to the UK Housing Market Survey, supply of housing was said to outstrip demand on net balance for the first time in two years.

Although house price figures were mixed in the north of England and Wales, 17 per cent more chartered surveyors across Britain reported an increase in house prices.

RICS spokesperson Jeremy Leaf, whilst cautious, maintained that most indicators on housing market performance are "still positive and consistent with further house price increases".

He added: "However, the magnitude of the gains going forward is likely to continue to ease reflecting the fact that new supply coming on to the market is starting to outstrip fresh demand."

James Perris of London-based De Villiers Surveyors commented that the London market continued "to attract interest with confidence from both the UK and international buyers".

Source: ask-re The Property People LLP