Economic gloom darkens housing market mood
Tuesday, 13 September 2011 5:42 PM
Property sales fell in August as economic uncertainty and the continuing shortage of mortgage finance impacted on the housing market, according to the latest survey by the Royal Institution of Chartered Surveyors (RICS).
The number of sales per surveyor dipped to an average of 14, taking transactions back to June 2009 levels. And the average stock on surveyors’ books fell from 70 in July to 67 in August.
Asked why sales continued to be so subdued, 79 per cent of surveyors cited general economic uncertainty and 70 per cent blamed lack of mortgage finance.
And the bad news for frustrated first-time buyers is that 40 per cent said that fears over house price falls were affecting transactions too, with many buyers and sellers staying away from the market until the situation improves.
The balance of surveyors saying prices were falling rather than rising declined slightly to -23 per cent and the same balance expected them to fall over the next three months.
RICS spokesperson Alan Collett said: “For the time being, our indicators suggest that demand for homes remain broadly steady, albeit at relatively low levels. However, the risk is that the worsening economic picture will gradually begin to have a more material impact on sentiment.”
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