Fears over the economy continued to impact negatively on the housing market in September, causing fewer sellers to put their homes on the market, according to the latest RICS UK Housing Market survey.
New instructions, which indicate supply levels to the market, fell back during September, with 5% more surveyors reporting supply of property fell rather than rose. Surveyors report fragile consumer confidence and continuing fears over the economy are causing many to think twice before putting their properties up for sale.
However, new buyer enquiries increased marginally during September, with 3% more chartered surveyors reporting an increase rather than decrease in demand (from -2%). Yet, although surveyors note that more mortgage products are becoming available, the large deposits required by lenders continue to act as a barrier for many would-be buyers, RICS said.
Stocks on surveyors’ books rose slightly during September to an average of 68.9 (from 66.9). Meanwhile, the number of sales per surveyor over the three months to August also increased fractionally, from 14.1 to an average of 14.5 (on a seasonally adjusted basis). Although the sales market remains challenging, respondents report that sales are still taking place on realistically priced properties.
The house price balance remained unchanged during September, with 23% more surveyors still reporting prices fell rather than rose. Price expectations also remained unmoved from August with a net balance of 23% anticipating prices will decline rather than rise over the next three months. Every part of the UK, including London, recorded some degree of negative price expectations during September.
Only sales expectations continued to be positive for the coming months (+12%), although they fell back from the previous month’s reading (+16). Surveyors predict investors in some parts of the UK will now begin to return to bricks and mortar as a haven from the turbulent financial markets.
Michael Newey, RICS housing spokesperson, said: “Falling supply of fresh stock is indicative of general fears overhanging the economy
