House prices in the West Midlands region rose at a more moderate pace during January, driven by the low number of properties for sale, reports the Housing Market Survey just published by the Royal Institution of Chartered Surveyors (RICS).
The survey says 21% of Chartered Surveyors in the region reported a price rise in January, but this was down from 36% the previous month. Almost two thirds (63%) reported prices had remained the same, highlighting the slowdown in the pace of price increases within the region. Only 4% of Chartered Surveyors reported a fall in prices.
Demand slowed once again, a possible reaction to the recent interest rate rises, as the region saw a third successive fall in new buyer enquires. This has impacted on surveyor confidence for house prices in the West Midlands, which has dipped slightly, but still remains positive.
Richard Franklin, RICS spokesperson and director at Savills comments on the regional picture: "With properties in short supply across the West Midlands, homes that are coming on to the market are not sticking around for long on estate agents' books. This has helped prices move upwards once again in January, though we may see the current supply and demand imbalance change as we head towards Spring ahead of the introduction of Home Information Packs (HIPs). Despite being a more watered-down version of the Government's original plans, concern over the pack's shelf life and the bureaucracy of the scheme, could see an increase in available stocks as homeowners look to get their properties on the market before HIPs come into play on 1st June. However, if the cost of borrowing increases further more people may choose to stay put rather than buy. In the current climate it can often be cheaper for some potential buyers to build on to their existing property rather than incur additional Stamp Duty and moving costs."
