The Royal Institution of Chartered Surveyors (Rics) says the UK property market is showing no signs of pulling out of its doldrums. Sales and prices remained for the most part flat for March says the recent surveys and interest from potential buyers declined.
There are some regional differences and London was probably the biggest difference in all of the UK. The negative outlook in general for the majority of the UK reflects the general problem in the economy and not the micro economy of London that is not reflective of the whole.
Downward pressure on house prices has been caused by the low level of interest on the part of the buyers in the majority of the UK. Now with the impending increase to interest rates and the continued shortage of mortgage funding for buyers it seems the overall recovery of the housing markets is still some way off.
The survey is small, with just over 250 surveyors but if the past is any indication, the survey has it’s a finger on the pulse of the housing market and has been a good indicator of what will happen. Last month there was reported by over 60% of surveyors that there was no change in prices of sold properties and those that had fallen were only down less than one percent to a high of 2%.
London is the only region that has recorded increased prices and a regional dividing line between north and south is definitely emerging and indicates that the capital is running under an entirely different market condition than the rest of the country. The completed sales level of per surveyor fell to its lowest level in over 20 months at just over 14 sales in the past three months.