The UK property market shows no sign of recovery thanks to economic uncertainty and concerns
about a possible rise in interest rates. New figures from the Royal Institute of Chartered Surveyors
show that house sales have hit their lowest level since summer 2009 and estate agents are also
reporting falling prices.
House sales at lowest level since 2009
The Daily Telegraph attributes the continuing stagnant market to uncertainty in the economy, the
lack of mortgage finance and fears about an imminent rise in interest rates.
The data from the Royal Institute of Chartered Surveyors (RICS) found that estate agents sold just
14.4 properties each during the last three months, the lowest level since June 2009.
The RICS survey also found that 23 per cent more estate agents reported prices falling rather than
rising.
The newspaper reports that ‘estate agents suggested many buyers are still being over ambitious
with their asking prices, which need to be lowered to secure a sale.’
First time buyers still unable to get on property ladder
The continuing slow housing market is also preventing many first time buyers from getting onto the
property ladder. A particular problem is the lack of affordable mortgage finance.
Alex McNeil, a RICS member based in West Yorkshire, said: “A generation of potential first-time
buyers patiently wait in rented accommodation.”
Other RICS members were pessimistic about the current market.
Neil Foster, a RICS member based in Tyne and Wear, said: “New buyers are entering the fray but
with little to excite their interest, transactions remain sluggish. Vendors still need to adjust their
sights in terms of price.”
Ben Hudson, a RICS member based in North Yorkshire, said: “Buyers remain incredibly picky and
reluctant to commit. They are also looking more carefully at their finances, encouraged by the threat
of a rise in interest rates and the continuing fragility of the economy.”
