RICS - House Price Fears Recede as London Confidence Spreads Across the South
Fears earlier this year of a significant fall in house prices are receding as confidence in the market strengthens, says RICS (Royal Institution of Chartered Surveyors) in its latest survey of England and Wales, published on 17th June.
In terms of new buyer enquiries and surveyor confidence in future sales, a generally stronger picture has emerged in southern regions, following an improvement in London for April. Confidence levels are at their highest level for six months, with 13% more RICS members saying they expect to be handling more sales over the next three months.
Nationwide, for the three months to May 25% more surveyors reported a fall in prices than reported a rise, a slight improvement on the previous survey's figure.
However, house prices are still declining in the south, though this is being partly offset by price rises in the north.
RICS housing spokesman Ian Perry says:
'The market remains sluggish due to a weakness in demand, with overall sales down 21% for May compared to last year, and the stocks of unsold properties on the market at the highest level since September 2000.'
'The south continues to experience declining prices but despite this we are seeing confidence from London spreading out across the southern region.'
'The declining number of enquiries has shown some signs of bottoming out indicating the market is stabilising, rather than showing any renewed vigour just yet.'
Other market observations:
- A net 2% of surveyors nationally reported bungalows experiencing a rise in prices, the only property type to do so. A net 13% reported declines in the prices fetched for country houses, the worst performing property type.
- 13% more surveyors reported a rise in instructions than reported a fall, up on April's figures.
- The survey points to low interest rates and a post Iraq-effect as key contributors to rising surveyor confidence.