More house sales predicted for 2013 than for the past 6 years

As part of its 2013 market forecast, RICS has predicted that there will be a three percent increase in year on year sales with over 960,000 transactions estimated to take place over the course of 2013. If this does actually occur, it will be the highest number of sales transactions to be completed since 2007.

When compared to historic standards, this would still only be a modest improvement given the fact that sales reached up to as high as 1.62m in 2006. RICS attributed a few factors such as the Funding for Lending scheme as a reason for the improvements that have been seen in the housing market over the last year. The improvement made by these schemes will make it easier for buyers to borrow in the future.

RICS stated that there are still going to be plenty of challenging times ahead for the national economy, but there will still be some great improvements in the housing market showing through over the course of the next year.

The housing organisation estimates that housing prices are going to increase over the next year by about two percent. On the other hand, renting is going to become more expensive for letters with the costs of letting expected to increase by as high as four percent.

On the other side, RICS is concerned that repossessions are going to increase over the course of the year with CML (the Council of Mortgage Lenders) predicting that about 25% of loans that were signed in 2007 at the market peak are now sitting in negative equity.

Despite this fact, the CML did note that the amount of possession claims that have taken place are starting to fall and it is possible that this year there will be less than 35,000 repossessions completed this year.