What the Royal Institute of Chartered Surveyors’ housing market survey claims:
Across the UK, the RICS claim their house price balance dropped for the eighth month in succession.
But the Institute’s UK housing market survey says a crash is being prevented by the fact fewer houses are being put up for sale.
A record number of chartered surveyors said the value of homes fell in March, with 78.5 per cent more surveyors reporting a drop in prices than those who reported a price rise.
The number of new buyers making inquiries has also fallen. According to the report, 49 percent more Chartered Surveyors reported a fall rather than a rise in new buyer enquiries - up from 39 percent in January.
The housing market survey says many would-be-buyers are either struggling to raise the necessary finance to precipitate a move or are exercising caution in the light of current economic uncertainty.
With the official interest rate cuts not being passed on to the high street, the RICS has little expectation that demand will improve in the near term. The survey says it is clear that price falls are being driven by buyers not being able to get finance rather than an influx of houses into the market.
RICS spokesman, Jeremy Leaf, said:
“Sentiment is at a very low ebb and will continue to remain depressed while the economy suffers from this unique liquidity blight. The slowdown in prices is directly attributable to a lack of available finance which has hit demand. However, until new supply increases dramatically a significant crash remains unlikely. The next six months will be a crucial period for homeowners but would-be buyers with larger deposits may see this market as an opportunity to acquire property in areas to which they could not previously aspire as recently as the end of 2007.”
RSS
Feeds
