The UK housing market is starting to show signs of life as buyer interest grows, according to the Royal Institution of Chartered Surveyors (RICS).

RICS reported that buyer interest has increased for the third consecutive month to November. This is the first time that buyer enquiries have risen for a 3 month period since early 2010.

“It is encouraging that buyer interest has edged upwards in the face of the endless diet of negative news from Europe and the turmoil in financial markets,” commented RICS housing spokesperson, Alan Collett.

“ However, a meaningful recovery still seems some way off.”

House prices are still in a bad way following the credit crunch. The Eurozone crisis and a lack of mortgage credit has only added further economic downward pressure on the UK housing market. RICS predicts that the situation is unlikely to make any significant changes in the near future.

The survey shows that more respondents reporting price declines than price increases. As a result, newly agreed sales rose along with the average number of sales per surveyor in the three months to November. However, despite this it’s the best level seen since September 2010 and not anywhere near pre credit crunch levels.

The movement and growing interest could be influenced by the forthcoming removal of the stamp duty freeze in March 2012. A flurry of homeowners who wish to buy a property, may be doing so before the end of the stamp duty holiday in March 2012.

Home insurance

There are many additional costs that buyers may have to take into account when purchasing a property. Stamp duty, for example, will increase to 3% for first time buyers on properties up to £250,000 from 25 th March 2012.

Home insurance and building insurance could also be an additional cost as most mortgage lenders will make it a condition of the mortgage that building insurance is taken out.