The number of people interested in buying a home has hit its highest level since November 2009, according to the Royal Institute of Chartered Surveyors (RICS).
Inquiries and sales rose last month, it said, while a majority of surveyors reported that prices also went up – the first time this has happened in three years.
Figures released by Connells Survey & Valuation show that the number of residential surveys conducted in April rose by 24% on March, and by 39% on the previous year.
Demand amongst first-time buyers is particularly strong, the figures suggest, with a 40% rise in valuations year-on-year. It marks the best April results in six years.
The RICS said that the Funding for Lending Scheme along with the new Help to Buy scheme announced in the recent Budget were attracting interest in higher loan-to-value loans to give fresh impetus in the housing market.
"Help to Buy in combination with the Funding for Lending Scheme appears to be giving the market a shot in the arm," said Peter Bolton King, RICS's Global Residential Director.
However, he warned that the supply of housing needed to increase at the same volume to avoid an escalation in prices.
Meanwhile, it is important that lenders continue to support the market, said Ben Thompson of Legal & General Mortgage Club.
"With the number of house viewings, the number of surveys being carried out and the number of new houses available all on the increase, we can see that there is definitely growing demand," he said.
"What we need now is even more encouragement from lenders in the shape of more lending so this trend can continue."
Keith McDonald
Which4U Editor
If you enjoyed this article:
- Check out the latest articles on our Finance Blog.
- Sign up for our free e-newsletter.
- Follow us on Twitter for regular updates.
{loadmodule php,TwitterButton}