THE housing market in the West Midlands appears to have finally turned a corner as a significant number of more buyers returned to the market last month, says the latest RICS (Royal Institution of Chartered Surveyors) Residential Market Survey.

During July, the number of potential buyers looking to enter the market grew substantially as a net balance of 81 per cent more chartered surveyors in the region reported increases in demand. compared with 51 per cent in June and 48 per cent in May.

Since the start of the year, buyers have gradually been returning to test the market - thanks to Government finance initiatives - yet the number of would-be buyers seen in July saw a sizable peak.

In tandem with rising buyer confidence, more potential sellers in the West Midlands looked to test the market and place their homes up for sale. Last month, 36 per cent more respondents in the region reported rises rather than falls in new instructions, up from 21 per cent in June.

The last two months’ positive reading for transactions was, however, outstripped by the change in new buyer enquires.

The number of homes sold in the region also increased last month, with 63 per cent more surveyors reporting a rise rather than a fall in newly agreed sales, compared with 46 per cent in June.

Significantly, the improved market activity was seen in every part of the UK as the recovery, initially focused in the South East, spread to regions across the country.

The West Midlands and the North East - areas which have suffered more than most since the market crash - experienced the biggest increases in buyer activity in July.

Consequentially, prices rose in the country for the fourth consecutive month and grew at their fastest rate since the market peak of November, 2006.

Notably, that was not only confined to more affluent parts of the country such as London but every region, including the West Midlands, saw growth as we enter the end of the summer period.

Looking ahead, it seems that prices across the West Midlands are going to continue to rise further, with a net balance of 25 per cent more surveyors predicting increases.

Meanwhile, transaction levels are also expected to grow, as 61 per cent more respondents expect sales to rise rather than fall over the coming three months.

RICS West Midlands residential spokesman, Harvey Williams of Harvey Williams Property Consultancy, said: “Both the volume of property coming on to the market and the number of sales has increased. Buyers seem to have a much more positive attitude and realistic offers are being received and accepted.

“Autumn should see continuing progress as the help-to-buy scheme is extended.”

Peter Bolton King, RICS Global Residential director, added: “These results are great news for the property market in the West Midlands as it looks like, at long last, a recovery could be around the corner.

“Growth in buyer numbers and prices have been happening in some parts of the country since the beginning of the year but this is the first time that everywhere has experienced some improvement.

“It is clearly good news that those parts of the property market that were struggling are, at last, showing some signs of life.”