Cautious optimism for housing market as UK demand shows signs of stability

Published on 10/10/2012 00:00

HOUSING market activity was “relatively flat” last month as demand from would-be buyers remained stable in most parts of the UK, a newly published report has said.

• Housing market in UK has been “relatively flat” in the last month as market stabilises

• But decline in number of houses coming into market in Autumn

Chartered surveyors said property prices in September fell at a pace consistent with previous months, with the number of homes coming on to the market also experiencing a decline.

The UK housing market survey from the Royal Institute of Chartered Surveyors (RICS) said that experts believe the market should end the year on a flat note, with transaction levels expected to stabilise.

The report, which measures how chartered surveyors who work in residential sales feel about the state of the market, found demand from potential buyers was largely unchanged, with 1 per cent more surveyors seeing decreases rather than increases in new buyer inquiries.

Interest from would-be buyers has not seen any significant growth since the spring of 2011, according to RICS.

Chris Highton, of Allied Surveyors Scotland, said: “The autumn market has now kicked in, with new properties coming onto the market and, more importantly, a reasonable level of sales.

“Volumes are still way down from the peak, so it would be nice to see levels increasing a little, but there are signs that things may be improving.”

A net balance of 29 per cent more surveyors reported falls in prices rather than rises, with a total of 19 per cent more surveyors in Scotland predicting prices would fall over the next three months.

The amount of homes coming onto the market also fell away as 40 per cent more respondents reported that supply had fallen rather than risen.