Lack of buyer demand and low levels of supply got the housing market off to a poor start this year, the RICS has reported.
In its usual baffling RICS-speak, the survey said that 7% more surveyors reported that demand for property fell rather than rose.
New instructions were also “moderately negative, with 3% more surveyors reporting instructions fell rather than rose”.
Newly agreed sales continued to drop, while weakness in market activity was also reflected in actual sales transactions.RICS estate agency members sold an average of 14.6 houses in the three months to January. This compares with a reading of 15.2 in December and is the lowest figure since June 2009.
Meanwhile, 31% more surveyors reported that house prices fell rather than rose in January.RICS spokesperson Ian Perry said: “Uncertainty over the prospects for employment, alongside the shortage of mortgage finance, particularly for first-time buyers, continues to weigh heavily on transactions levels.“
However, there is a very clear regional pattern emerging, with London seeing a greater level of price resilience, while in much of the North and Midlands the market remains under greater pressure.”
A total of 241 surveyors, covering 337 offices, took part in the survey. Although a small survey, the RICS says its monthly report is taken into account by the Bank of England’s monetary policy committee at its meetings to set interest rates.
