House sales hit two-year high

House sales have hit a more than two year high, according to the latest figures from the RICS, backed by data showing growth in sales under NewBuy and a rise in planning permissions received.

The monthly RICS housing report found that surveyors sold an average of 16.8 homes each in the three months to February, the highest figure since late in 2009. The RICs figures also showed that surveyors confidence in future price rises was more widespread, and that 16% surveyors saw the number of sales rise in February than saw sales fall.

It also showed a small increase in new buyer enquiries and new instructions by sellers. The only note of caution was added by surveyors reporting that 3% more felt prices had fallen rather than risen in February, slightly more than in January.

The news came as the Home Builders’ Federation reported that sales through the government- backed NewBuy mortgage indemnity scheme has reached 130 per week, double the average achieved across last year. The body said that in total 3,700 reservations have been made through the scheme, which offers first-time buyers access to 95% mortgages.

The HBF said the improvement was down to the continued reduction in interest rates by banks offering mortgages under the scheme.

The HBF’s latest Housing Pipeline report, compiled by Glenigan, also found that local authorities granted approvals for 45,041 new homes across England in the fourth quarter of 2012, up 62% year on year and 33% up on the previous quarter. This was the highest figure since the first quarter of 2008.

Peter Bolton King, RICS global residential director, said the figures were “encouraging”, showing the housing market appearing to pick up across most parts of the UK despite on-going concerns about the health of the economy. He added: “This may, in part, be down to the growing availability of mortgage finance through schemes such as Funding for Lending. However even with activity running at its best level since the middle of 2010, it is still well down on its pre-crisis norm.”  

Stewart Baseley, executive chairman of the HBF said:“It has been a very positive start to the new year, with signs of an easing of the two main blockages that have greatly hindered our industry. But significant threats to any sustainable recovery remain.”