Demand for housing in the West of England is pushing prices up, according to new research.
Sales of new homes increased for a third consecutive month across the region, the February 2020 RICS 海角视频 Residential Market Survey found.
A total of 27 per cent of South West contributors reported a rise in house prices – the highest reading since December 2017 – and a net balance of +26 per cent are expecting prices to continue rising over the coming spring.
Some 33 per cent of respondents said there was an increase in new buyer enquiries over the month and experts are now forecasting further growth in sales over the next three months.
New homes coming onto the South West housing market also stayed positive for the third month running, with new instructions seeing a net balance of +19 per cent in February.
But concerns have been raised by property professionals about the impact of coronavirus which, although yet unclear, could affect viewings and the traditional spring house selling season.
'Inventory levels are still at historically low levels'
Simon Rubinsohn, RICS chief economist, said: "It is encouraging that the results of the latest survey continue to show a positive trend both in terms of potential buyer interest and new instructions to agents.
"Indeed, this is the first time since 2014 that new supply to the market on the RICS indicator has increased for three consecutive months.
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“Inventory levels are still at historically low levels despite this but the firmer trend in appraisals suggests that the picture could improve over the coming months providing the coronavirus doesn’t become more of an inhibitor of activity in the sector.
“For now at least, feedback around expectations are consistent with activity levels continuing to strengthen albeit relatively modestly.”
In the South West lettings market, demand continued to outstrip supply.
This month +12 per cent of respondents reported seeing an increase in tenant demand, while the number of new rental properties was reported at a net balance of -20 per cent.
Nationally, rising demand for homes to rent and falling supply will see rents increase by potentially two per cent - and up to three per cent a year by 2025 if this trend is maintained.