Sales Drop Further With Little Sign Of Respite

The average number of transactions per surveyor fell further in August as a lack of mortgage finance continued to stifle the ability of buyers to access the market according to RICS’ UK housing market survey.

The RICS house price balance improved slightly for the fourth consecutive month but still remains at a significantly low level. 81.0% more Chartered Surveyors reported a fall than a rise in house prices, a decrease from 83.1% in July. The continued inability of many to secure mortgage finance is reflected in the collapse in transactions. The average number of transactions per surveyor (over the last three months) is now at 12.7, the lowest figure since the survey began with some Chartered Surveyor estate agents in a number of regions reporting less than 1 sale per week.


Demand remained weak in August. The balance of surveyors reporting new buyer enquiries fell slightly with 28% more Chartered Surveyors seeing a fall than a rise compared to 27% in July. In June and July, surveyors reported that many sellers had dropped asking prices to more realistic levels and that predatory buyers were waiting to pounce on bargains, but the traditionally weak month of August has seen this interest stagnate.

RICS spokesperson Jeremy Leaf said: "A lack of mortgage liquidity is the key issue which is keeping the housing market from showing any real sign of recovery. While money is scarce, many will continue to be denied the next step on the property ladder. The Government’s stamp duty policy will not be enough kick start transactions and is more likely to assist buy-to-let investors with better access to finance than the first-time buyers it was aimed at. More needs to be done to reinvigorate a market whose confidence has taken a severe knock."

(CD/NS)