Buyers returning to housing market

Figures show renewed interest in the property market continued during March and sales increased for the first time for more than a year.

According to the Royal Institution of Chartered Surveyors (RICS), buyer inquiries rose for the fifth consecutive month during March, with estate agents in all areas of the country reporting a rise.

Around 31% more surveyors reported a rise in new buyer inquiries than those who saw a fall, the highest level since September 2003 and up from 21% more in February.

RICS says the rise is a result of interest from potential buyers who are hoping to take advantage of lower interest rates on mortgage deals and significant house price falls.

Not only did interest continue to rise, but figures show the interest is beginning to translate into sales, with the number of transactions up to an average of 9.7 properties per estate agent during the three months to the end of March.

This is up for the first time since the end of 2007 and up from 9.6 in February.

Despite the slight increase, transactions remain at a historic low, however, more surveyors are expecting sales to continue to improve following the positive steps forward in March.

These latest figures from RICS come after the Council of Mortgage Lenders said there was a slight rise in the number of mortgages taken out by people buying a home during February.

RICS spokesman Ian Perry said: "Buyer interest is starting to gain real momentum but will remain frustrated while mortgage finance is scarce.

"Surveyors are optimistic that transaction levels will increase, especially for those with the finance to purchase family homes.

"However, accessibility for first-time buyers is likely to remain difficult while loan to value ratios generally remain at current levels.

He added that the housing market is still in a "fragile state" but there are more signs that things will begin to "stabilise" over the coming months.