Wednesday, December 12, 2012
RICS November 2012 UK Housing Market Survey
Buyer interest grew across the UK last month as confidence in
the housing market continued its gradual increase, says the latest
RICS housing market survey (11 December 2012).
Enquiries from would-be buyers saw a rise in most parts of the
UK last month and have now grown steadily since the end of the
summer (net balance +11%). Although demand is still at a
historically low level, it would appear that those who are in a
position to do so are gradually looking to test the market.
Meanwhile, the amount of homes coming up for sale remained
fairly flat during November (net balance +4%). Very little movement
has been seen in terms of new instructions for over two years and
this has contributed to the current anaemic state of the market.
The sector will be hoping that the government's recent announcement
of funding to free up land for development in England will have the
desired impact and increase availability.
Moving on to prices, modest drops were visible in most areas,
albeit at a slower pace than was seen earlier in the year. A net
balance of nine percent more chartered surveyors reported falling
prices during November. While slightly up in October's reading,
this still suggests that the market is now beginning to
stabilise.
Across the UK, London was once again the only part of the
country to see prices increase, with surveyors in the capital
reporting a net balance of +40%. Northern Ireland and Wales
experienced the most significant drops with respondents in those
areas reporting net balances of -49 and -36% respectively.
Looking ahead, chartered surveyors are optimistic that activity
levels should continue their gentle rise with 14% more respondents
expecting sales to increase rather than decrease over the coming
three months. The price picture is, however, likely remain rather
flatter by way of contrast.
Peter Bolton King, RICS Global Residential Director
said:
"There is certainly some optimism creeping back into the
housing market, and it is encouraging to see an increase in
potential buyers across parts of the country where the market has
particularly suffered in recent years. That said, there is still a
long way to go and the long standing barriers to home ownership are
still very much a problem for the likes of first time
buyers.
"The announcement in last week's Autumn Statement of funding
to unlock large sites for house building is a step in the right
direction, and the Funding for Lending scheme is beginning to bear
fruit for potential buyers. However, the macro economic picture
continues to weigh heavy on the market and continues prevent any
really significant boost in activity."