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Property sales driven by cheap mortgages

Date: Wed, 17 Aug 2005

Property sales could be recovering as borrowers continue to take advantage of cheap mortgage offers.

Figures from the Royal Institution of Chartered Surveyors (RICS) reveal that property sales rose last month - the second month in a row.

The RICS survey also concludes that house price falls are at their lowest level for five months, with just 36 per cent of surveyors reporting a drop in prices, compared to 42 per cent in June

Although, the general market is still relatively flat, there is evidence that the recent interest rate cut and continuing competition in the home loan sector is encouraging more sales.

"Some signs of recovery are evident in the market. Would-be buyers have become more confident as a result of the interest rate outlook, while the economy continues to deliver steady growth, despite the past year's slowdown," said Jeremy Leaf, RICS housing market spokesperson.

"The August interest rate cut will support a further rise in buyer activity, though there is little prospect of a renewed house price boom anytime soon," he added.


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