· House prices continued to rise in May, but the Government’s decision to abolish HIPS has given supply a boost, according to RICS UK Housing Market survey published today (15 June 2010).
· Consistent with the national trend, nine percent more chartered surveyors in the East of England reported a rise rather than a fall in house prices, the same level as seen in April.
· Government announcements are already impacting the market, with surveyors reporting that the abolishment of HIPs has pushed additional supply onto the market. From a negative level of new instructions in April, twenty seven percent more chartered surveyors reported a rise rather than a fall in May. However, chartered surveyors have seen a decrease in buyer interest across the region, with six percent more chartered surveyors reporting a fall rather than a rise compared to three percent in the previous month.
· Newly agreed sales remain in negative territory although there has been a vast improvement in the region, from 27 percent reporting a fall rather than a rise in April to just four percent in May.
· Despite this, activity is expected to rise over the coming months with many surveyors much more optimistic than the previous month despite fears of cuts. The sales expectations net balance rose from 9 percent to 21 percent from April to May.