Housing market continues upward trend

The number of surveyors reporting a rise in house sales in August was 82 per cent bigger than those seeing a fall according to research by the Royal Institute of Chartered Surveyors.

Property prices are also on the rise with 27 per cent more surveyors in the region reporting increases rather than decreases last month.

Tim Waring, from property firm Knight Frank, said: “We’re seeing an improving market, with increasing viewings and sales.

“However, there is a danger of a ‘disconnect’ if sellers harden their stance on pricing, as buyers are still expecting discounts.

“This could potentially lead to some market stagnation at least in the short term.”

A net 32 per cent of surveyors expect property prices to rise in the next three months with a similar figure predicting the number of sales completed in Yorkshire to increase.

Peter Bolton King, global residential director for RICS, said: “It’s not surprising that more and more people are looking to sell their homes.

“The buyers are out there and prices are on the up so if you’re looking to move it’s a good time to do so.

“What we don’t wish to see, however, is prices rise to such an extent that they become unaffordable.

“For the market to work properly, it’s vital that property is both accessible and affordable, and we’ll be monitoring the situation very carefully as the housing sector continues to recover.”

The RICS figures are the latest in a string of positive data on the housing market that has fuelled hope that the economic recovery is taking hold.

However, concerns have also been raised that the Government’s measures to support people who are priced out of the market could create a new bubble in the housing market.

The Government’s ‘Help to Buy’ scheme already offers interest free loans to buyers of new homes and from January it will provide mortgage guarantees for people with five per cent deposits buying new or existing homes worth up to £600,000.

Critics of the policy argue allowing people to borrow more on smaller deposits without increasing housing supply will force prices up in an unsustainable way but Ministers argue the policy will help more families achieve their aspiration to own a home.