The latest survey from the Royal Institution of Chartered Surveyors highlights that on balance prices are continuing to fall, activity in the market is flat and that while the rest of the country sees price drops London still has rising property prices.
According the their July UK Housing Market Survey, 32% of chartered surveyors saw prices fall, 57% said they stayed the same and 10% saw a price rise. With 22% more seeing a price fall this is a slight improvement on June’s seasonally adjusted 26%. But this statistic of a majority of chartered surveyors seeing price falls has now persisted for over a year. And 13% more of them believe that prices will continue to go down rather than up with large deposits seeming to be the stumbling block.
Surveyors also reported a fall in the number of properties coming on the market in July and RICS puts this down to potential sellers unwilling to come onto the market as prices are reducing.
The average number of properties vendors have on their books has risen slightly from 69.7 to 70.2 as the average number of sales has declined to its lowest level since June 2009 at 14.2.
Although the outlook for prices remains pessimistic says RICS, the number of transactions is expected to increase.
“The UK housing market continued to stall during July; prices edged lower and sales levels remained subdued. While the holiday season appears to have had some impact on the market, the continual problem of inaccessible mortgage finance is still preventing first time buyers from accessing the market. Unsurprisingly, with prices continuing to fall, many would-be sellers seem unwilling to lower their expectations and are reluctant to place their property on the market.” Said RICS spokesperson Ian Perry in their press release.
The next release is due on September 13th 2011.