LONDON (MNI) – The UK housing market continued to sputter through
June, as demand failed to pick up and supply of new property fell back,
according to the latest RICS Housing Market survey.
The RICS survey showed seasonally adjusted net price balance turned
more negative in June, dropping from -17 in May to -22 – i.e. 22%
more surveyors recording price falls than rises.
The survey showed activity contracted in June, with all indicators
continuing to lose momentum after the temporary spike in the lead up to
the expiry of the stamp duty exemption at the end of March.
In terms of the demand side of the market, the new buyer enquiries
indicator fell from -2 to -10, its lowest net balance in over 18 months.
Newly agreed sales also decreased in June with the net balance falling
from -5 to -12.
Average sales per surveyor (per branch) also edged down, falling
from 15.6 to 15.5, while average stocks on surveyor books (per branch)
fell by 0.8% from 67.6 to 67. This resulted in the sales to stock ratio
– an indicator of market slack – remaining unchanged at 23.1%,
considerably less than the long-run average of 33%.
Looking ahead, expectations for future house prices showed little
change as a net balance of 19% more surveyors expect prices to continue
to fall as against 8% in May.
In spite of this, however, there is considerably more optimism
surrounding transaction levels, with 11% more respondents predicting
sales to increase rather than decrease over the coming three months.
Commenting on the data, Simon Rubinsohn, RICS Chief Economist, said
that levels of buyer interest seem to have fallen back since the expiry
of the stamp duty deadline earlier in the year.
“Although there is some positivity that the amount of sales going
through is going to see an increase, it is unlikely that we will see any
real movement until purchasing a property is more affordable and
accessible for the likes of first-time buyers,” he said.
–London Newsroom; +44 207 862 7492; email: ukeditorial@marketnews.com
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