House prices remain static yet demand for property remains, says Rics

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House prices remain static yet demand for property remains, says Rics

Tue 9th Aug 2011

The UK housing market continues to remain static with 22 per cent more surveyors across the country reporting a fall in property values during July, according to the Royal Institution of Chartered Surveyors (Rics).

In its latest market survey, Rics suggested that the large deposits required by first-time buyers continued to have a detrimental impact last month.

Therefore, even though there was a plus five per cent (from zero) rise in terms of new buyer enquiries from a relatively flat performance since the start of the year, this failed to have an impact.

According to ARLA's latest research published yesterday (August 8th), the increase in buy-to-let mortgages acquired by landlords - with a 30 per cent rise in landlord acquisitions in the north-east alone - has also failed to significantly stimulate the market.

"The continual problem of inaccessible mortgage finance is still preventing first-time buyers from accessing the market," commented Ian Perry, spokesperson for Rics.

He added that with prices continuing to fall, many potential sellers seem "unwilling to lower their expectations" and are therefore keeping their property off the market.

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