In June the housing market continued to stutter as demand failed to pick up and the supply of new property for sale fell back. This is according to the influential survey from the Royal Institution of Chartered Surveyors, The UK Housing Market Survey.
The RICS say that interest from would be purchasers reduced slightly in June and this was reflected in a lacklustre level of properties coming on to the market. A net balance of ten percent more surveyors canvassed reported a fall in enquiries from new buyers. Apparently the market has struggled since the expiry of the stamp duty holiday in March. Newly agreed sales have now slowed for three months in a row. Click4quote landlord insurance clients will have mixed views about this. Some may spot buying opportunities while others who are looking to sell will be depressed. As usual, London was the only area where prices increased, although the level of increase has slowed down since the beginning of 2012.
A net balance of 19% more surveyors expect prices to fall in the future. Despite this, the surveyors are more optimistic about the future for transaction levels with a balance of 11% more respondents expecting sales volumes to increase rather than decrease over the next three months.
The opinion of the surveyors is that there will be no real movement in the market until affordability levels improve and first time buyers are able to enter the market.