Warm weather and stamp duty change pull house sales back

New buyer inquires edged up in Yorkshire and the Humber, with one per cent more surveyors reporting increases rather than decreases in demand, the Royal Institution of Chartered Surveyors (RICS) said.

But although this was described as “flat”, it still represented a notable increase on February’s reading of minus-eight per cent.

The flow of new properties coming onto the regional market dropped off, with a net balance of 18 per cent more respondents reporting falls in new instructions (from plus-four per cent more in February).

And significantly, many surveyors across the country said those looking to sell their homes must be realistic in their price expectations if they are to be successful.

Meanwhile, prices continued to edge downward in the region, albeit at a slower pace than in recent months. A total of 24 per cent more surveyors reported falls rather than rises in prices, representing the least negative reading since the middle of 2010.

Predictions for future prices across the region continued to fall in March, as 18 per cent more respondents predicted decreases rather than increases in prices over the next quarter.

However, with demand levels seeing gentle increases across the region, expectations for future transaction levels moved into positive territory with a net balance of five per cent more surveyors expecting sales to increase over the coming three months.

Jon Charters-Reid, RICS Yorkshire and Humberside spokesperson of Charters Reid & Associates, said: “It was encouraging to see a boost in the housing market across Yorkshire and Humberside in March as many first-time buyers looked to beat the stamp duty holiday deadline. There still remains a shortage of first-time buyers, but investment buyers remain active.”

Alex McNeil MRICS of Bramleys in Huddersfield added: “After an encouraging start to the new year, the level of inquiries, viewings and offers received have all fallen showing the fragility of the market, coinciding with the well publicised increase in variable mortgage rates.”

Nationally, nine per cent more estate agents reported increases rather than decreases in demand, the highest reading in almost two years.

About 10 per cent of surveyors reported falling prices last month, the least negative reading since June 2010, as prices continued to edge downwards in all regions except London.

The market saw an upturn in activity as the March 24 deadline for the end of the stamp-duty free period for first-time buyers on properties worth under £250,000 approached.

The report said: “Another factor that appears to have had a positive impact during March is the weather. Indeed, March was ‘warmer’ than normal.”

The study said that this could mean the findings gave a more robust impression than the underlying trend, although it said there was “growing evidence” of a more fundamental improvement, with surveyors becoming more optimistic.

Expectations for future sales remain positive, with 20 per cent of surveyors expecting sales to increase over the coming three months.

Simon Rubinsohn, RICS chief economist, said: “There has been a gentle increase in activity across the market in the early part of the year but it remains to be seen whether this can continue, given the changes in the Budget and ongoing problems affecting the economy.”