RICS latest UK Housing Market survey shows that activity in the housing market has continued to slow during November, with house prices slipping further.PARA It is reported that 44 per cent more chartered surveyors say that prices fell in November, a slight improvement on October’s net balance of -49 per cent.
First-time buyers are still in short supply due to the large deposits required by lenders and the availability of mortgage finance is keeping many from getting a foot on the property ladder.
The levels of stock coming to the market since the spring appears to be fading; new instructions have now dipped for two months in succession. Surveyors report that many potential sellers are adopting a wait and see approach and have decided to wait until the new year to put their property on the market.
The average number of sales per surveyor has decreased, with a mere 14.8 sales, on average, taking place in the last three months. As a result sales to stocks ratios have fallen to their lowest levels since May 2009.
The South West is bucking the national trend as the only region to report a positive net balance for agreed sales whilst the West Midlands and Northern Ireland have registered the most negative readings.
The report states that surveyors’ 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.
RICS spokesperson, Ian Perry comments:
“There 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 purchasers’ minds, with many deciding to ‘wait and see’ until the new year. Meanwhile, the lack of mortgage finance continues to deter first time buyers.”
If you would like to view the Housing Market survey for November 2010 you can click on the link below.
Today’s Conveyancer, bringing you the latest conveyancing news and updates.