Housing Transactions At 30 Year Low
The number of house sales taking place currently in the UK is at the lowest level it has been since 1978, according to the most recent survey on the housing market from the Royal Institution of Chartered Surveyors (RICS).
The report shows that the number of property surveys carried out by RICS members fell to an average of 17.4 per surveyor during the course of the last three months.
The survey also revealed that almost 93 per cent of surveyors reported a fall in house prices over the last month, although this figure was 95 per cent in April, which suggests a slightly more positive outlook going forward. This improvement was mirrored in the number of potential buyers making enquiries about properties, which has also increased since April.
The housing market still remains in a very weak position at the present time. The main reason for this is undoubtedly a lack of consumer confidence, both in the housing market and also the wider economy. People are feeling the effects of the credit crunch and many individuals are being forced to tighten their belts. Even those who are currently in a position to move house seem to be unwilling to commit to making a purchase, with many potential home buyers sitting on the fence to wait and see what happens within the property market.
The other major factor which is slowing the housing market is, of course, the lack of available finance for mortgages and other home loans. Many lenders are facing tough times during the current economic climate and due to lack of funds in the wholesale market and tighter lending criteria being imposed by banks and building societies, many potential buyers are finding it hard to get accepted for a loan on the house they want.
