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RICS: Investors in ‘position of strength'
The number of people moving house is at its lowest level since records began, but buyers are not complaining.
According to the RICS' UK housing market survey, the average number of transactions per surveyor fell further in June but prospective buyers appear to be showing increased interest in the market.
The RICS house price balance improved slightly for the second consecutive month but still remains a significantly depressed figure.
88 percent more Chartered Surveyors reported a fall than a rise in house prices, a decrease from 92.2 percent in April. The regional picture remains gloomy with surveyors in the West Midlands unanimous that house prices are falling.
The inability of many to get secure mortgage finance is reflected in the collapse in transactions. The average number of transactions per surveyor (over the last three months) is now at 15.3, the lowest figure since the survey began and the net balance of new agreed sales remains in negative territory.
Demand is weak with the balance of surveyors reporting new buyer enquiries still well into negative territory.
However, there has been a noticeable improvement in the trend with 35 percent more Chartered Surveyors reporting a fall in buyer enquires compared to 50 percent in May and 69 percent in April.
Surveyors report that some buy-to-let investors are entering the market to take advantage of rising rents and equally that ‘predatory buyers' are looking to bargain for reductions in a falling market.
The lack of new instructions to sell property continues to provide a layer of support to the market. Large numbers of distressed sales have not taken place and the employment picture has not deteriorated to a degree where repossession levels have started to accelerate.
Commenting, RICS spokesperson Jeremy Leaf said: "With demand so low, would-be-buyers are negotiating from a position of strength.
"Even in a weak market there are always opportunities for investors and buyers to profit and some are starting to circle for bargains.
"However, transaction levels remain incredibly low with many buyers cut out of the process by tight lending conditions."
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