RICS December Housing Market report
The Royal Institution of Chartered Surveyors (RICS) has provided some key housing indicators based on sales and enquiries in December 2010.
The principle points are
• Completed house sales steadied at the end of the year, however, the view for the property market stays uncertain.
• In the three months to December, the average number of completed sales per surveyor stabilised at an average of 15.2 (from 14.8). Across the UK, completed transactions were highest in the East Midlands and Yorkshire and the Humber (averages of 19 and 18 respectively). East Anglia recorded the lowest level of transactions, with an average of just 10 per surveyor.
• As a result of adverse weather, estate agents reported the number of agreed sales in December fell to a net balance of -15 per cent (from -14). Concerns over the economy remain a concern for some buyers, while the lack of available mortgage finance continues to keep many prospective purchasers out of the market.
• Surveyors’ expectations for sales over the coming months edged up, with eight per cent more expecting sales to increase rather than decrease, up from six per cent in November. Many respondents suggested that the market may begin to pick up again in the Spring.
• Lack of supply to the market continues to be an issue. New instructions fell from a net balance of -4 to -14, as potential sellers waited until the New Year before putting their property on the market.
• New buyer enquiries - which signal demand for property - fell for the seventh consecutive month. Surveyors continue to report that lending constraints, particularly to first-time buyers, remains the biggest barrier to any strong improvement in the market.
• Pessimism still surrounds current house prices; with 39 per cent more surveyors reporting prices fell rather than rose in December.
• Expectations for house prices over the next three months saw 29 per cent more surveyors predicting prices would fall than rise