UK House Sales Slump
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London, 15 July 2008. Sales of houses in the United Kingdom have slumped, and are now at the lowest level on record. The news has further deepened the gloom in business and financial circles in London.
The Royal Institution of Chartered Surveyors (RICS) first started monthly surveys of members activities more than thirty years ago. The current figures show an average of just over 15 sales for each surveyor in the RICS, which is the lowest figure ever returned.
London, 15 July 2008. Sales of houses in the United Kingdom have slumped, and are now at the lowest level on record. The news has further deepened the gloom in business and financial circles in London.
The Royal Institution of Chartered Surveyors (RICS) first started monthly surveys of members activities more than thirty years ago. The current figures show an average of just over 15 sales for each surveyor in the RICS, which is the lowest figure ever returned.
According to the Rightmove.co.uk House Price Index, homes for sale now outnumber buyers by 15:1, a new record. Unsold housing stock has also hit the highest amount on record, at 75 properties per estate agent office. Asking prices have dropped by 1.2% from May to June.
Halifax confirmed this trend last week when they reported the fastest drop in house prices on their records, with overall prices down 9% from their peak last August.
The only potential silver lining in the RICS report is that the rate of decline in activity has dropped. Buyer enquiries had dropped 69% in April, 50% in May and 35% in June. The report suggested an increase in buy-to-let investors and bargain hunters entering the market.
“cash is King” said Hosni Afleck, Chief Analyst at EconomyWatch.com. “Investors that have cash or access to capital at reasonable rates are able to strike bargains. Underlying demand for housing has not dropped, so as sales decrease and repossessions tick upwards, we expect to see rents continue to rise. This bodes well for buy-to-let investors who will continue to increase the size of their portfolios.”
“However we believe that there are more investors on the sidelines waiting for further price falls before coming into the market. We therefore expect the activity drop to bottom out this year before modestly increasing in 2009.”
Jenny MacGraw, EconomyWatch.com
