Confidence is returning to the housing market as a survey of estate agents gives the most optimistic outlook for prices since the credit crisis began.
The balance of agents saying prices were on the rise again in the last three months reached 22 per cent, the highest level since May 2007, according to the Royal Institution of Chartered Surveyors.
A shortage of supply is encouraging buyers in many areas to offer higher prices to secure the best properties and marketing through an internet estate agent seems to be becoming a more and more attractive option as an alternative to paying high street commissions.
Separate figures from the Council of Mortgage Lenders also gave the housing market a boost, showing the number of loans approved for those looking to buy a new home was 29 per cent higher in August than in the same month of last year. However, a traditional seasonal dip meant numbers fell slightly on the previous month.
Ian Perry, a spokesman for RICS, said: “A lack of supply is still underpinning the rise in house prices with new instructions to estate agents only edging up very gradually. “Despite the problems first-time buyers are continuing to encounter in securing finance, the level of enquiries from potential purchasers is increasing. This imbalance between demand and supply suggests that house prices will move higher in the near term.”
RICS said the average number of sales per estate agent during the past three months also increased to 18, the highest level since March last year.
Economists warned a greater of supply of houses for sale coming onto the market would have adverse effect on prices.
Howard Archer, an economist at Global Insight, said: “House prices are currently being supported by a lack of properties for sale. Paradoxically, a significant pick up in the amount of properties coming on to the market due to recently firmer prices would actually be liable to hold down prices further out.”
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