Housing market continues to cool

| December 14, 2010 | 0 Comments
Housing market continues to cool

The Royal Institution of Chartered Surveyors (Rics) today revealed the ongoing lack of buyers and economic uncertainty continues to impact negatively on the housing market.

There continues to be a high number of unsold properties on the market as buyer demand continues to weaken.

Buyers have adopted a “wait and see” approach as uncertainty continues to surround the economy and the Government’s spending cuts make prospective buyers cautious.

According to Rics, more surveyors reported prices falling than rising last month - a similar situation to October.

In addition, new buyer enquiries declined for a sixth consecutive month, while newly agreed sales also said the Rics.

Meanwhile, first-time buyers continue to struggle to get onto the property ladder as lenders are still demanding large deposits.

However, it must be highlighted that December is traditionally a slow time of year for the housing market and many vendors wait until January before putting their properties on the market.

Commenting on today’s data, Ian Perry of Rics, said: “Despite some better economic data, fears over how future spending cuts will impact on the jobs market are clearly still weighing heavily on potential purchasers’ minds, with many deciding to wait and see until the new year.”

Figures show mortgage approvals continue to decline, while yesterday Rightmove reported a further fall in asking prices in December.

According to Rightmove, asking prices for residential property in England and Wales fell 3% – or £7,000 in the last month – the biggest drop since December 2007.

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