Rics: Housing market remains in the doldrums

| July 12, 2011 | 0 Comments

The Royal Institution of Chartered Surveyors (Rics) has today reported that the UK housing market remained weak in June with house prices falling more than expected.

According to the Institution, homeowners remain reluctant to put their properties up for sale, while buyers remain uncertain about the economic climate.

These factors, together with the ongoing mortgage rationing, mean the housing market is expected to remain subdued for some time to come.

The Rics survey said the house price balance edged higher to -27 in June from May’s reading of -28, lower than forecasts of -25.

Commenting on the survey, Alan Collett of Rics said: “With continued uncertainty over the jobs market and the economy, this subdued picture is set to continue.

“Anecdotal evidence from surveyors suggests that the uncertain economic climate is making transactions more difficult and longer to conclude,” Rics added.

In the meantime, the number of completed home sales held steady at an average of 15 per surveyor last month but this remains well below the long-term average of 26.4.

In other news today, PricewaterhouseCoopers said it saw only a 12% chance that real UK house prices would match their 2007 high by 2015, and only a 50% chance of prices exceeding 2007 levels by the year 2020.

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