NEWS
UK property market seeing more optimism as fall in prices slows, says RICS
11-10-2012
 |
RICS also reports that there is more optimism in the market and chartered surveyors’ expectations for future sales have reached their highest level since May 2010.
During the month of September a net balance of 26% more respondents predicted that transactions will increase in the final three months of 2012.
Surveyors are also cautiously optimistic about prices with 9% more respondents expecting prices to fall over the coming three months. While still in negative territory, this is the most positive reading since the time of the expiry of the stamp duty holiday in March.
Demand from potential buyers remained stable in most parts of the country with 4% more surveyors across the UK seeing increases rather than decreases in new buyer enquiries. Interest from would be buyers has not seen any significant growth since the end of 2009.
A net balance of 15% more surveyors reported declines rather than rises, the best reading since the spring and overall housing demand and supply remained relatively stable across the country.
‘The housing market was relatively flat during September but surveyors are optimistic that the run in to Christmas could see an increase in activity in many areas of the country. Prices are still dipping but at a much lower rate than seen in previous months,’ said Peter Bolton King, RICS' global residential director.
‘Despite this, problems still exist and more needs to be done to get the market moving. Unrealistic expectations on the part of vendors seem to be stalling the transaction process. Meanwhile, although the funding for lending scheme appears to be improving mortgage availability, those at the very bottom of the housing ladder are still struggling,’ he added.
According to Peter Rollings, chief executive officer of estate agent Marsh & Parsons, there are tentative signs that the mortgage market may be improving, and lenders expect Funding for Lending to help them boost credit availability in the final quarter of the year.
‘It remains to be seen exactly how many would be first time buyers will directly benefit over the coming months, but if we see a consistent increase in the number of buyers able to leave the rented sector, we could see the housing market outside of London move out of neutral,’ he said.
He also said there are concerns that London’s housing market is running in a completely different gear to the national market, which is still simply ticking over. ‘Credit conditions have been stiflingly tight this year, and those with substantial equity or deposits have been the primary drivers behind any improvement in house prices,’ he explained.
‘With the greatest concentration of wealthier buyers in the capital, price growth has been largely limited to within the bounds of the M25,’ he added.
