Activity in homes market gathers pace

But despite an expected pick-up in sales in the coming months, prices are likely to remain flat, the Royal Institution of Chartered Surveyors (RICS) said in its housing market survey for November.

A balance of nine per cent more surveyors reported price falls rather than rises on a monthly basis, which is slightly up on October but suggests that the market is fairly stable, RICS said.

Continuing a long-running trend, London, which has seen strong demand from overseas buyers, was the only area to see prices increase, with 40 per cent of surveyors reporting rises rather than falls.

Northern Ireland and Wales saw the worst price drops, with net balances of 49 per cent and 36 per cent of surveyors reporting falls rather than rises respectively.

Inquiries from potential buyers have been steadily growing across the country since the end of the summer, with a balance of 11 per cent more surveyors reporting increased levels of interest rather than falls.

RICS said that although demand from would-be buyers is still at low levels by historic standards, people who are in a position to buy a house are gradually coming forward to test the market.

A net balance of 14 per cent of surveyors expect house sales to increase rather than decrease in the next three months, although prices are expected to remain “flatter by way of contrast” RICS said.

Peter Bolton King, RICS global residential director, said: “There is certainly some optimism creeping back into the housing market, and it is encouraging to see an increase in potential buyers across parts of the country where the market has particularly suffered in recent years.”