Sellers returning to the market: RICS

Sellers are returning to the housing market but buyer interest is slowing, according to the latest Royal Institution of Chartered Surveyors (RICS) UK housing market survey.

The latest research showed a net balance of 15% of surveyors reported that new instructions had increased in October, compared to 5% in September. All regions reported a rise in instructions for the first time since the onset of the credit crunch with the North, the South West and London leading the way.

Transaction levels continued to rise with the average sale per surveyor reaching 19 over the past three months. As a result, sales to stock ratio - a lead indicator of future prices - climbed. It has now risen for ten consecutive months and stands at 30.

The net balance of chartered surveyors reporting rises rather than falls in house prices reached 34% in October, up from 20% in September - its highest result since December 2006. London is leading the upturn in prices with the net balance of surveyors reporting rises rather than falls in the capital climbing to 95% - its highest figure since December 1996.

On the negative side, improvement in buyer interest slowed for the fourth consecutive month. Surveyors reported new buyer enquiries slipped from 35% in September to 31%.

Jeremy Leaf, spokesperson at RICS, said it expected further price gains in the near term as the supply of property would struggle to keep pace with the increase in demand.