The number of properties coming on to the market has fallen and the level of stock available for sale is now at its lowest level since early 2000. The average number of houses per surveyor was 68, down from 73 in the previous month, and considerably lower than the long run average of 120.
Completed sales averaged 37 per surveyor, the same as last month, but 2% up on last November. Agreed sales also rose and surveyors are reporting the biggest rise in enquiries from new buyers since last June. A good indicator of the state of the housing market, the ratio of sales to stock, at 54%, is at its highest level since October 1988.
Meanwhile, despite mixed opinions on whether house prices have reached their peak, the Woolwich Mortgage Index has identified that over the past three months average consumer confidence in the South increased by 14%, from 44 to 58%. This trend continued in the North (up 7%) and the Midlands (up 10%).
The Woolwich Mortgage Index also showed that UK gross lending levels last month were the highest ever recorded for a February since the study began in 1993. UK gross mortgage lending exceeded £12.8 billion (18 billion) in February 2002 which showed a 36% increase on the equivalent value from February 2001 at £9.4 billion ($13.25 billion).
RICS national housing spokesman, Ian Perry, said: 'The boom in the market shows no sign of abating. Many buyers undoubtedly held back at the end of last year and have now made a decision to return to the market. Demand is outstripping supply right across the country, helping to sustain price rises at their current rate, although the pace of increase has begun to settle.'
Andy Gray, head of mortgage products, Woolwich, said: 'Our figures demonstrate that customer confidence is continuing to rise, this goes against recent market commentary that suggested house values may have peaked. Our research shows that house price confidence has increased for both men and women, and across all three geographical regions. Woolwich predicts that consumer confidence will lead to sustained activity in the market.'
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