More Bad News for UK Housing Market

A survey released yesterday by the Royal Institute of Chartered Surveyors reported a further fall in house prices through November, along with a drop in the number of house sales.

The comprehensive survey, which monitors data from RICS’ members, showed 44 percent more of surveyors recorded a fall rather than a rise in prices during November. Whilst this figure suggests a slightly smaller decrease than in October, it still represents a significantly large drop.

The survey also suggested a fall in the number of houses sold, with the ratio of sales to housing stock falling to its lowest level since May of last year. Surveyors are reportedly pessimistic in their expectations of price changes in the near future, although they are confident of an increase in the quantity of housing sales after the New Year.

The housing market has suffered in recent months due to a combination of market uncertainty, an excess of supply and a lack of access to credit for first time buyers.

Commenting on the findings of the survey, RICS spokesperson Ian Perry said: “There was little change in the housing market in November; prices continued to edge lower and sales levels generally remained subdued.”

“Despite some better economic data, fears over how future spending cuts will impact on the jobs market are clearly still weighing heavily on potential purchasers’ minds, with many deciding to ‘wait and see’ until the new year.”