Signs are good for the housing market

House prices rose in September as more buyers entered the market, according to the latest survey from the Royal Institution of Chartered Surveyors (Rics).

The organisation said that despite prices having fallen for six months in a row, the housing market had risen at their fastest rate since the end of 2002 in September.

The group said 49% more surveyors in England and Wales reported seeing a rise in the number of people looking to buy a property during the three months to the end of September, up from 16% in August and 11% in July.

There seems to be increasing demand for middle market housing in desirable areas across the country Jeremy Leaf, RICS

Overall 20% more surveyors reported seeing price rises than those who saw price falls.

The survey follows a report from Rightmove that showed property prices rising sharply.

Snapped up

Housing spokesman Jeremy Leaf said: "We would expect to see more market activity in September as people turn their attention away from summer pursuits and focus on moving house, but this year it has picked up more than usual."

"There seems to be increasing demand for middle market housing in desirable areas across the country and buyers are snapping up these properties quickly."

In recent months, the North has generally seen far higher house-price growth than the South, where high prices can mean that many potential first-time buyers struggle to get on the property ladder.

Rics said all northern regions saw price rises during September, most notably in the North and Northwest.

The price falls experienced in the South during the spring and summer have now halted and in some areas such as the southwest the market is showing real signs of life.

In fact, only in East Anglia are surveyors reporting price falls.

House prices in London are treading water, according to the survey..

Turnaround

Overall, confidence remains strong, with 46% more surveyors expecting property prices to rise during the next three months than those who think they will fall.

The Rics survey reflects confidence in the property market rather than what is actually happening to house prices.

Therefore, if is usually the first to show any signs of change in the market.