House prices edged up in May with the supply of new properties to the market boosted by the abolition of home information packs (HIPS), according to the RICS housing market survey published today.
More than 1 in 5 estate agents and surveyors (22%) reported a home price rise rather than a fall – a slight increase from 19% reporting the same in April.
The survey also reports home prices rising in most regions – except Wales, Yorkshire and Humberside and the West Midlands.
Many estate agents and surveyors reported an increased flow of properties to the market following the decision to cancel HIPS.
The net balance of firms reporting rises in new instructions moved from 11% in April to 21%t in May.
In response to an additional question included in the survey, 73% of estate agents and surveyors expect the abolition of HIPs to lead to more new instructions.
Buyer interest continued to increase at almost the same pace as in April.
The average number of completed sales fell by nearly 5% pushing the sales to stock ratio – a key indicator of future house price inflation – from 28% in April to 27% in May.
Ian Perry of RICS said: “We are generally confident that sales will continue to pick up over the summer months. The increase in supply as a result of the abolition of HIPs is helping to support this optimism despite continuing concerns about mortgage finance. A higher level of instructions should lead to a flatter trend in house prices in the latter part of the year.”