Fewer homes for sale in flat market
Tuesday, 11 October 2011 9:08 AM
Fragile consumer confidence and worry about the state of the economy are making home owners think twice about putting their property on the market, according to the Royal Institution of Chartered Surveyors (RICS).
Its housing market survey for September published this morning says 5 per cent more surveyors reported a fall in instructions to sell property than a rise.
Enquiries from new buyers increased slightly after a fall in August. The RICS says more mortgage deals were available but lenders were continuing to demand large deposits.
Stock on surveyors' books rose slightly to an average of 68.9 although the number of sales per surveyor increased fractionally.
The balance of surveyors saying house prices are rising rather than falling remained at +23 per cent.
However, the reverse balance (-23 per cent) expect prices to fall rather than rise over the next three months. Every region apart from London had negative price expectations.
RICS housing spokesperson Michael Newey said: "Falling supply of fresh stock is indicative of general fears overhanging the economy, with many potential sellers preferring to stay put for now. As a result, the UK housing market remains pretty flat with activity level generally subdued."
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