Fresh signs of life in the West Midlands' housing market with more homes on sale
The housing market is showing renewed signs of life in the West Midlands, improving for the first time in three years, with more homes going up for sale.
A lack of supply of homes on the local market has been holding it back but the latest report from chartered surveyors across the West Midlands found most were seeing that situation improve.
As a result the number of sales has gone up in May as the market turns positive for the first time since September 2015.
And demand from buyers has risen for the first time this year, according to the RICS UK Residential Market Survey for the West Midlands from the RICS (Royal Institute of Chartered Surveyors).
The RICS said agreed sales held steady for May at the national level but was rising in both the West and East Midlands.
House price growth in the West Midlands remained strong in May, with firmly rising prices reported across the region during the last two years. In contrast, the outlook for prices across the south of the country is negative, says the RICS.
On the lettings market, the demand for rented properties was firm, with more chartered surveyors in the survey saying they had seen an increase in demand from tenants.
Alongside this, they had seen an increase in new rental properties coming on the market for the first time since September last year. "However, given the sustained lack of supply since then, rents are envisaged to increase further at the national level over the year ahead," said the RICS.
Looking at the national picture, RICS chief economist Simon Rubinsohn said: "Although agents are suggesting that a little more supply may have come onto the market in May, some of it from the Buy to Let sector, inventory levels still remain near historic lows.
"Indeed, with the run rate on appraisals continuing to track below the numbers of a year ago it is premature to conclude that a sustained upturn in available stock is imminent.
“Against this backdrop, it is likely that the headline picture regarding activity in the housing market will remain subdued for some months to come. This is reflected in the feedback to the latest survey which shows sales expectations only marginally positive on a one-year view.”
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