Quinton Scott

New instructions rebound more strongly than buyer enquiries

• The net price balance remains comfortably in positive territory but drops to 17%
• Both new buyer enquiries and new instructions rebound from the depressed January levels but the latter does so more strongly
• Surveyors remain upbeat about both price and sales expectations albeit less so than last month
  

The February 2010 RICS Housing Market Survey showed surveyors to still be generally positive on price movements in residential property but a little less so than in January. The seasonally adjusted net balance of respondents reporting increasing rather than declining prices fell to 17% in February from 31%.

To view the RICS Housing Market Report for February please click on the link below:

http://www.rics.org/site/download_feed.aspx?fileID=6068&fileExtension=PDF

John King, Chairman of Quinton Scott comments:

'While activity levels have increased, results show a similar number of sales from last month, indicating that both vendors and potential purchasers are concerned about something!.  If March goes the same way as the previous two months then we are in to a 'slow down' in the market'.

Blue Fin, Southwark Street, London EC1 

8,000 sq.ft. of Grade A offices acquired on behalf of a plc client.

Merton Industrial Estate, London SW19

7,500 sq.ft. of industrial/warehouse accommodation acquired on behalf of a wholesale automotive spare parts distributor.

Extreme weather puts a freeze on activity but prices continue to rise

The January 2010 RICS Housing Market Survey showed an increasing number of surveyors seeing price rises rather than falls. The seasonally adjusted net balance of surveyors reporting rising rather than falling prices rose to 32% in January from 30% and is now only slightly below

November's recent high of 35%.

However, buying and selling fell during the month; respondents to the survey attributed this to the extreme weather conditions experienced in the early January. The new buyer enquiries net balance fell to -20% (from +18%), the agreed sales net balance fell to -15% (from +19%) and the new instruction net balance fell to -5% (from +15%).

To view the RICS Housing Market Report please click on link below.

http://www.rics.org/site/download_feed.aspx?fileID=5828&fileExtension=PDF

John King, Director of Quinton Scott comments: 

'Transactional levels are improving which is further evidence of the recovery.  The top end of the market, circa £3-£5M is in short supply at present and this is fueling Estate Agents' opiion on value.    Overall a good start to the year'.

Prices still rising but at a slightly more modest pace

• 30% more surveyors saw price increases rather than price decreases in December, down from 35%
• The gap between new buyer enquiries and new instructions continues to narrow but is still consistent with further house price gains
• Average completed sales per surveyor climbed to its highest level in December since March 2008.

The December housing market survey shows the gap between new buyer enquiries and new instructions to estate agents continuing to narrow.

However, for the time being the increase in demand still appears to be outstripping the increase in supply, albeit at a more modest pace than previously. This is reflected is the still significant majority of surveyors who are seeing residential property prices rise; the net balance of surveyors reporting price increases (rather than decreases) edged down to 30% from 35% in November.

On the demand side, new buyer enquiries increased for the fourteenth consecutive month. However, with the net balance falling to +20, enquiries rose at the slowest pace since January 2009. Other demand indicators are also losing some momentum although they remain in positive territory. The newly agreed sales balance slipped to +22 from +24 while the sales expectations net balance dropped to +6. On the other hand, the actual level of average completed sales per surveyor edged up fractionally to 19.1, the highest reading since March 2008

To view the RICS Housing Market Survey for December please click on the link below.

http://www.rics.org/site/download_feed.aspx?fileID=5556&fileExtension=PDF

John King, Director of Quinton Scott, comments:

'The most positive aspect to the year end is the 'Upbeat nature' that 2010 will be better than 2009 in terms of sales and instructions'.