–RICS: Net 9% Surveyors Saw UK House Prices Up June vs 21% May
–RICS: June Net-Price Balance Lowest Since Jul 2009
LONDON (MNI) – Weaker demand for housing and increased supply hit
house price expectations in June, according to the latest RICS house
market survey.
The net price balance fell to +9, from +21 the month prior, the
lowest reading since July 2009.
Weaker demand and increasing supply were the key factors hitting
price expectations, RICS said.
Buyer interest fell for the first time this year, with a balance of
-5% of chartered surveyors reporting a fall in new buyer enquiries, down
from a balance of 8% reporting a rise in May.
Property coming on to the market increased at the fastest pace
since May 2007, with the net balance rising to +27 from +22 prior. One
of the factors driving the sharp increase in instructions was the
abolition of Home Information Packs in May, RICS added.
The average stock of property on surveyor’s books increased by 8.1%
on the month to 66.6 per surveyor.
Meanwhile, the average number of completed sales only rose by 0.8%
on the month to 16.7 per surveyor. As a result, the sales-to-stock ratio
– a key indicator of market slack- fell to 25%, the lowest level since
June 2009, RICS said.
Sales expectations remain positive overall, but less optimistic
than last month, with the net balance falling to +19 from +32.
A RICS spokesperson said: “On the back of the shift in the
demand/supply balance and the drop in the sales to stock ratio, it is
not surprising that price expectations turned slightly negative.”
David K. Jones, of Jones and Redfearn Chartered Surveyors in Rhyl,
said: “Activity is improving but prices are not and sales are still hard
to come by. Mortgage availability is still a major issue that needs
addressing sensibly.”
–London newsroom 4420 7 862 7492; email: ukeditorial@marketnews.com
[TOPICS: MABDS$,M$B$$$,MABDA$]
