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Slight increase in North East home buyer enquiries.

There was a marked increase in buyer enquiries in the North East housing market last month, with 10% more surveyors reporting an increase rather than decrease in demand during September.

However, in the latest RICS UK Housing Market Survey, many surveyors still found that large deposits continued to act as a barrier for many would-be buyers.

RICS North East Spokesman Richard Sayer believes there is still a gap between sellers’ expectations and purchaser’s offers, with both parties being unrealistic.

He commented: “The property market remained buoyant in August and has continued in September with the return to school and the seasonal pick up in the market.

“However, we note that there are conflicting statements on prices going up or down across the country, but our best impression is that they remain broadly flat with areas of lower demand having to be more realistic and falling perhaps 5% year on year.”

Numbers of new homes on the market fell, with 4% more surveyors reporting a fall in supply, down from +6% last month, a trend which has been attributed to weak consumer confidence and continuing economic fears.

Nonetheless. Respondents reported that sales are still taking place, with the number of sales per surveyor only dropping slightly, from 13 to 12.

RICS housing spokesman Michael Newey added: “Although it is hard to see what will give the market a lift in the near term, the announcement of a further raft of quantitative easing from the Bank of England will help at least to keep mortgage rates down.

“This, if nothing else, should ease the pressure on existing homeowners and limit the risk of a material pick-up in repossessions.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .