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News: Housing Market At Virtual Standstill

Tue, 14 Oct 08

The housing market is at a virtual standstill, according to the Royal Institution of Chartered Surveyors’ latest survey of estate agents.

According to its September survey estate agents are selling on average less than one property a week.

This is the lowest rate since Rics started its survey in 1978 and 52% down on the same time last year.

London’s housing market is among the worst affected. Estate agents in the capital sold on average just eight properties between July and September.

Around nine out of ten estate agents say prices have fallen over the same period in their area.  

Rics spokesman Jeremy Leaf said: “The housing market continues to hold its breath and unless mortgage liquidity improves, the market is likely to remain a dormant beast for some time to come. As it stands, only those with significant finances are in a position to access the market.”

There was some good news. Enquiries from would be buyers, either desperate to get on the property ladder or move home, have risen. The difference between those reporting a fall or a rise in enquiries from buyers is now 17%, smaller than August’s gap of 27%.

Rics says this indicates that demand is still there for homes, despite the squeeze on credit. The government's decision to temporarily raise stamp duty to £175,000 has been cited as a factor in stimulating this renewed interest.


 

By Joe Lepper

 

See also – Home Information, House Prices and Trends

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