Houses see more sellers

Sellers are returning to the housing market as they are tempted back by rising prices and growing demand, new figures reveal.

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Report follows 5.4% house price rise this summer

Buyers and sellers are scrutinising the property market Credit: Tim Ireland/PA Wire/Press Association Images

House prices are 5.4% higher than last summer, figures from the Halifax showed last week. The lender said prices rose 0.4% in August from July, the seventh consecutive monthly increase, resulting in an average figure of £170,231.

New Bank of England governor Mark Carney recently addressed concerns that Government stimulus measures risk stoking another property bubble.

Estate agents are encouraging sellers to come to the market Credit: Rebekah Downes/PA Archive/Press Association Images

He said the Bank is "acutely aware" of the potential threats and said action will be taken to clamp down on mortgage lending if needed. RICS said the increase in supply was not enough to keep pace with the "sheer weight of demand".

All regions of Britain saw greater numbers of homes come onto the market, with sharp rises in the south west and north east in particular. Surveyors expect prices to continue rising, with a balance of 45% predictingprice rises rather than falls over the next three months.

Help to Buy boost for housing market

RICS report shows growth in number of houses on the market Credit: Rui Vieira/PA Wire/Press Association Images

Help to Buy offers Government loans to allow people to buy new-build homes with a 5% deposit, while Funding for Lending is designed to ease borrowing conditions for households as well as small businesses

While these schemes have helped fuel demand, supply has been squeezed by relatively few new properties coming onto the market as people wait for the right moment to sell.

RICS global residential director Peter Bolton King said: "It's not surprising that more and more people are looking to sell their homes. The buyers are out there and prices are on the up so if you're looking to move it's a good time to do so."

But he added surveyors are warily watching house prices inflate amid fears they will become unaffordable

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RICS reports says more sellers returning to house market

Surveyors with increasing new instructions rose to a balance of 26% in August, from 16% in July, a report by the Royal Institution of Chartered Surveyors (RICS) showed.

And surveyors seeing house prices rise rather than fall climbed to the highest level in almost seven years with a balance of 40%, as the market is fuelled by Government stimulus schemes such as Help to Buy and Funding for Lending.

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