Demand for housing has increased in the North East as would-be homeowners clamber to get on the property ladder.
Figures released by the Royal Institution of Chartered Surveyors (RICS) reveal those wanting to enter the market grew during August as the housing market continues to blossom.
It’s claimed 96% more surveyors in the region reported rises in buyer inquiries, an increase from the 79% figure in July.
More than 55% of surveyors also reported an increase in new instructions, sparking hopes that more properties were coming on the market.
Elsewhere data released by LSL Property Services claim house prices are rising at their fastest rate for three years, fuelled by an increase in the number of first-time buyers and a sharp fall in homeowners defaulting on their mortgages.
Last night Peter Bolton King, RICS Global Residential Director, welcomed the housing boost but warned against an increase in prices, claiming the regions risked having a stock of properties that were unaffordable.
He said: “It’s not surprising that more and more people are looking to sell their homes.
“The buyers are out there and prices are on the up so if you’re looking to move it’s a good time to do so. What we don’t wish to see, however, is prices rise to such an extent that they become unaffordable.
“For the market to work properly, it’s vital that property is both accessible and affordable, and we’ll be monitoring the situation very carefully as the housing sector continues to recover.”
The RICS said surveyors in the North East expect house prices will rise, with 29% more respondents predicting price growth over the next three months.
Transaction levels are also expected to grow, as 55% of surveyors expecting sales to rise rather than fall over the coming three months.
However Neil Foster, of Newcastle-based Foster Maddison Property Consultants, said: “August has seen the busiest week of the year for sales activity but we do not expect this to be sustained.”
Across the country, each region saw supply increase as the recovery continues to spread from the South East of England to other areas.
The South West and the North East, in particular, saw the number of new homes coming onto the market rise significantly.