New homebuyer enquiries rocketed in April - RICS

New buyer enquiries soared to their highest level in a decade in April, figures show, while the number of homes sold edged higher.

According to the latest Royal Institution of Chartered Surveyors (RICS) UK housing market survey, fresh enquiries increased for the sixth consecutive month in April, climbing 9% on March's total.

The trade body says some of the interest was translating into sales, but points out transactions remain at relatively low levels.

Surveyors sold an average of 10.6 properties over the past three months, up from 9.7 in the three months previous.

Also, the balance of newly agreed sales continued to rise and surveyors in most areas now expect this trend to continue. This is the first time surveyors have been universally optimistic about sales since August 2006.

Jeremy Leaf, spokesperson for RICS, says: "Transaction levels could benefit from an increase in supply but falling prices and low interest rates are discouraging sellers as is the latest change in home information pack (HIP) legislation.

"House prices could stabilise in the coming months but prospective purchasers - and first-time-buyers particularly - will continue to encounter challenges while banks maintain current loan to value ratios and make accessibility difficult even for those who have accumulated considerable equity in their existing properties."

jamie.obertelli@incisivemedia.com