Pessimism surrounds housing market

The latest RICS UK Housing Market survey, released today, reports that housing market activity remained stagnant in July and house prices dipped further.
There was a slight improvement on June’s net balance of -26 as 22 per cent more chartered surveyors reported price falls in July, giving a -22 reading.  These figures have now remained negative for over a year.  Having said that, of the falls reported 82 per cent of those were in the 0 to -2 per cent range.
The reported slight increase in new instructions during early summer fell back in July from 0 to -7, indicating that potential sellers are reluctant to enter the market with the current reduced sale prices.  Demand, however, increased in July from 0 — 5 per cent with the strongest levels still being recorded in London.
The average number of sales per surveyor is at a 2 year low, down to 14.2 from 14.7.
The latest survey shows that there is still plenty of doom and gloom in the housing market but price expectations over the next three months are a bit more encouraging, up from -25 to -13, still negative but a an improvement.
Commenting, RICS spokesperson, Ian Perry said:
“The UK housing market continued to stall during July; prices edged lower and sales levels remained subdued. While the holiday season appears to have had some impact on the market, the continual problem of inaccessible mortgage finance is still preventing first time buyers from accessing the market. Unsurprisingly, with prices continuing to fall, many would-be sellers seem unwilling to lower their expectations and are reluctant to place their property on the market.”
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