By +Eric Jafari
Residential market growth has been predicted for the
first quarter of the year, driven by new funding schemes.
According to the latest Royal Institute of Chartered Surveyors'
(RICS) housing market survey, confidence is returning to sector and
will bring with it an increase in house sales. In December, 24 per
cent more surveyors predicted transactions to rise in 2013,
following a steady performance in the final month of the year.
Peter Bolton King, RICS global residential director, stated: "As
we start the new year, confidence to the housing market does appear
to be improving, helped in part by the impact of the Funding for
Leading Scheme. Indeed, our members are predicting that transaction levels will
continue increasing in many parts of the country and it may be that
we are now over the very worst."
Under the Funding for Lending Scheme, banks and building
societies are able to borrow from the Bank of England for up to
four years against assets, such as business or mortgage loans. This
is designed to act as an incentive to banks to boost lending
through lower interest rates and increased availability of loans
and mortgages: The more they lend, the more they can borrow.
However, according to Mr Bolton King, more still needs to be
done to make the property market more accessible to potential
buyers. Construction of new properties also needs to increase,
especially in areas such as London, where supply is unable to meet
demand. This will help to stimulate activity and enable the market
to build on its current performance.
With December 2012 the first time that national price balance
was in positive territory since 2010 - with price forecasts by RICS
to rise by two per cent during 2013 - the sector doesn't need an
excuse to grab the bit between their teeth. Signs are pointing
towards growth and decisive action may be the key to gaining
momentum and reversing the negative market trend established during
the financial crisis.
21 January 2013
RICS,Peter Bolton King,Funding for Lending