Estate agents in the UK say that house prices are beginning to increase because of the property shortages at present. An increase in sales and property investment demand is a strong cause of this trend.
Although some estate agents maintain that prices will still fall over the next few months, many other opinions are that prices will increase as also suggested by the Royal Institute of Chartered Surveyors (RICS). This should be a good time for those looking for property investment.
The average number of house sales is said to be rising. RICS also indicated that average sales rose from 11.7 in May ’09 to 12.7 in June. This is a good sign that the economy is showing some improvement, and prompting increasing interest from property buyers.
Although experts have warned we should not be too optimistic too soon as there is a long way to go before the economy recovers. Many estate agents are worried about the lack of financial support for first-time buyers, and the amount of buyers struggling to get a mortgage, which contributes to a slower recovery of the property market.
While RICS is cautious about being too optimistic about a recovery in the market, the latest figures are clear there has been some improvement. If property sales continue upwards, lenders could follow suit, with a hopeful recovery of the market not too far away.