A report published today by the Royal Institute of Charted Surveyors confirmed that the UK housing market had slowed considerably
According to the latest RICS UK Housing Market survey (14 December 2010)
44 per cent of chartered surveyors reported prices fell rather than rose in November, a slight improvement on Octoberââ¬â¢s net balance of -49 per cent. Lack of demand from buyers continues to stifle the market, and new buyer enquiries fell for the sixth consecutive month. First-time buyers are in particularly short supply, as large deposits required by lenders and availability of mortgage finance keep many from getting a foot on the property ladder.
Commenting, RICS spokesperson, Ian Perry said:
ââ¬ÅThere was little change in the housing market in November; prices continued to edge lower and sales levels generally remained subdued. Despite some better economic data, fears over how future spending cuts will impact on the jobs market are clearly still weighing heavily on potential purchasersââ¬â¢ minds, with many deciding to ââ¬Ëwait and seeââ¬â¢ until the new year. Meanwhile, the lack of mortgage finance continues to deter first time buyers.ââ¬Â
Unsold properties remained on surveyors books for longer in November, as the average number of stocks rose to 69.5 (from 67.2). Meanwhile, the average number of sales per surveyor decreased, with just 14.8 sales on average taking place over the last three months. As a result, the sales to stock ratio fell to its lowest level since May 2009.
Looking ahead, surveyorsââ¬â¢ expectations for house prices over the next three months remain negative, with a net balance of -41 per cent expecting prices to fall. However, sales expectations are more upbeat, with six per cent more predicting sales to increase rather than decrease over the next three months.
