Buyer interest continues to grow but the number of transactions per estate agency has fallen to new lows, according to the latest survey from the Royal Institution of Chartered Surveyors.

Interest in the market increased for the fourth consecutive month with 20% more chartered surveyors reporting a rise than a fall in new buyer enquiries up from 15% in January.

Interest is strong in nearly every region with London - where interest rose to levels not seen since October 2006 - and the south of England leading the way.

The rise in interest reflects both the drop in asking prices and continued interest rate cuts. As house prices fall, those with finance are looking to pick-up up bargains.

But despite the interest, buyer interest is not being translated into sales. In fact the numbers of transactions per agency (over the last three months) is now at 9.5, a drop from 9.8 in November, and the lowest figure since the survey began in 1978.

London agents are experiencing the worst transaction levels with, on average, only six properties sold per agency over the past three months.

The balance of surveyors reporting house price falls increased slightly in February with 78.3% more chartered surveyors indicating a fall than rise in house prices, from 76.6% in January.

The net balance of surveyors reporting new instructions to sell remains in negative territory indicating that supply is very tight.


Citywire.co.uk

The fact that buyer interest is growing and the international recession is most likely beginning it's final stages means that sales should turn around fairly soon.