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Posts Tagged ‘Royal Institution of Chartered Surveyors’

Although more new houses were put up for sale in December, transactions were hampered by sellers asking too high a price for their properties, according to the Royal Institution of Chartered Surveyors (RICS).

December saw the number of houses put up for sale increase for the third month in a row, especially in London where new instructions reached their highest level since January 2005.

There was also a slight increase in new buyer inquiries but in view of the unrealistically high prices, surveyors’ sales expectations declined in comparison with November and are now flat.

RICS housing spokesman Ian Perry said: “The increasing number of prospective sellers who placed their homes on the market in December is a positive development, as a lack of stock has been a big issue in some parts of the country.

“But with sales expectations remaining flat, it is important that vendors are realistic in their pricing if they wish the sale to go through in good time.”

The recent fall in property prices continued in December, but it slowed to its lowest level since June 2010.

London was the only area where property prices increased.

A lack of mortgage finance is still holding back the market, with many prospective first time buyers unable to raise the high deposits needed to take their first step on the property ladder.

However, house-builder Persimmon reported a more positive outlook for the first-time buyer market.

The company said it expects its 2011 profits to rise by half and the improvement is expected to continue into 2012, helped by an increase in first time buyer interest.

“Whilst the general economic backdrop to the U.K. housing market remains challenging, we have experienced encouraging levels of visitors, resilient sales reservations, low cancellation rates and stable prices,” Persimmon said in the statement.

Although the demand for property increased in November, the ongoing economic downturn is holding back housing activity according to the latest report from the Royal Institution of Chartered Surveyors (Rics)

Rics’ UK Housing Market survey for the three months to the end of November showed a small improvement in both demand from buyers and property sales during the month.

Seven per cent more of the surveyors who took part in the survey reported an increase in new buyer enquiries rather than a fall, in November.

The average number of sales recorded by each surveyor branch increased from 15 in October to 15.4 in November and the majority of surveyors expect sales to continue to increase in the coming months.

For the year as a whole, the housing market has been subdued and the survey found that a growing proportion of surveyors consider economic uncertainty the main reason for this, even more so than difficulties in obtaining a mortgage and fears that house prices may fall.

The survey showed ongoing variation in house prices across the regions and a separate report from Rics suggests that prices will keep rising in London but will either fall or remain steady in other parts of the UK.

Rics’ housing spokesperson Alan Collett said: “It is encouraging that buyer interest has edged upwards in the face of the endless diet of negative news from Europe and the turmoil in financial markets.

“However, a meaningful recovery still seems some way off,” he added.

The latest report from the Halifax also suggested that the weak economy is holding back the housing market.

The bank expects the economic downturn and high unemployment levels to hold down house prices throughout next year although, in line with the Rics report, it expects prices to be stronger in the south east and London.

The Royal Institution of Chartered Surveyors (Rics) has today reported that the UK housing market remained weak in August with house prices falling further.

According to the Institution, homeowners remain reluctant to put their properties up for sale, while buyers continue to struggle to secure a mortgage and remain uncertain about the economic climate.

The Rics report said 23% of surveyors reported house prices fell rather than rose – this reading has been in negative territory for more than a year.

Furthermore, the Rics said the number of completed home sales fell to an average of 14 in the three months to August – the lowest level for over two years.

Commenting on the survey, Alan Collett of the Royal Institution of Chartered Surveyors said: “The risk is that the worsening economic picture will gradually begin to have a more material impact on sentiment and discourage potential house purchasers, even where mortgage finance is available.”

Meanwhile, surveyors remain negative about the direction of future house prices with 23% more surveyors expecting prices to fall rather than gain over the next quarter.

New buyer enquiries, which signal buyer demand, declined in August with 3% more surveyors reporting a fall than a rise, while new instructions moved from a net balance of -8% to 0%.

Yesterday, the Council of Mortgage Lenders (CML) said first-time buyers have to put down an average deposit of 20% in order to secure a mortgage.

With house prices edging higher for the year to date, the average new mortgage has gone back up to £120,000, the CML said, meaning affordability remains a major issue for first-time buyers.

However, the Council did reveal that the number of loans for house purchase rose in July.

According to the Council, there were 48,400 loans advanced for house purchase in the month – up by 1,000 from June’s figure but almost 7,000 lower when compared with July 2010.

The Royal Institution of Chartered Surveyors (Rics) has today reported that the UK housing market remained weak in June with house prices falling more than expected. According to the Institution, homeowners remain reluctant to put their properties up for sale, while buyers remain uncertain about the economic climate. These factors, together with the ongoing mortgage [...]

The Royal Institution of Chartered Surveyors (Rics) has today reported that the traditional spring selling season has been hit by a lack of mortgage finance and economic uncertainty. This time of year is traditionally busy for the housing market but securing a mortgage remains difficult for many potential buyers – particularly first-time buyers. Furthermore, the [...]