Activity in the UK housing market remained flat during July, with house prices slipping further and sales volumes deteriorating, according to this morning’s RICS UK Housing Market survey.
The average number of sales per estate agency office in the three months to the end of July slipped to 14.2 – the lowest level since June 2009. Unsold stock increased slightly, to 70.
The RICS said large deposits required by lenders are a stumbling block for many would-be buyers.
New instructions, which saw a slight upturn during the early part of the summer, fell back in July.
The RICS said that with prices continuing to slip, it appears that many potential vendors are unwilling to accept reduced selling prices, so are reluctant to enter the market.
London continued to buck the national trend as the only region to report price rises rather than falls. The capital also recorded the strongest level of new buyer inquiries, again outperforming the rest of the UK.
RICS spokesperson Ian Perry said: “The UK housing market continued to stall during July; prices edged lower and sales levels remained subdued. While the holiday season appears to have had some impact on the market, the continual problem of inaccessible mortgage finance is still preventing first-time buyers from accessing the market.
“Unsurprisingly, with prices continuing to fall, many would-be sellers seem unwilling to lower their expectations and are reluctant to place their property on the market.”
One agent, Peter Fearn, of Keats Fearn in Farnham, Surrey, said: “This is one of the slowest markets I can recall in over 40 years’ experience. Sales are taking so long to progress, once agreed, that buyers and sellers are apt to withdraw at the last moment, often on a whim.
“The work involved for the poor (literally) agent is colossal compared to the fee received, which is coming under threat from increased competition.”
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