Stock of homes for sale picking up but ‘storm clouds are gathered’

The flow of fresh homes coming on the market reached its strongest level in nearly two years in May, figures from surveyors indicate.

The Royal Institution of Chartered Surveyors (Rics) said a net balance of 14% of property professionals reported seeing new instructions to sell rising rather than falling in May, marking the best reading for new property listings since March 2021.

The latest survey result also broke 13 months in a row of new instructions falling rather than rising.

The report said: “Alongside this, average stock levels on estate agents’ books have picked up slightly in recent months to stand at 38 properties, albeit inventories remain low on a historical comparison (and still comfortably below the near 40 average seen over the past five years).”

Housing market demand was also at its least negative level in a year in May.

A net balance of 18% of property professionals reported seeing falls in new buyer inquiries rather than rises.

Although this was still a negative reading, it represented an improvement compared with a net balance of 34% of professionals reporting falls in April, as well as being the least negative figure for the past 12 months, the report said.

A net balance of 7% of surveyors reported a drop-off in sales rather than a rise in May, which was also less downbeat than March and April, Rics said.

A balance of 30% of surveyors reported a fall in house prices rather than a rise in May, which was less negative than 46% in February.

Rics said there were some variations in house prices across the UK. In London a balance of 3% of surveyors reported prices falling rather than rising, and in Scotland and Northern Ireland the survey indicated prices were heading upwards.

By contrast, in the the East Midlands and the South East, property professionals were particularly likely

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