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Property 'stalemate' continues, surveyors say | Property 'stalemate' continues, surveyors say |
(about 2 hours later) | |
The UK property market remained in "stalemate" in June, according to the latest survey by the Royal Institution of Chartered Surveyors (Rics). | |
Prices continued to fall back while sales rose only "marginally". | Prices continued to fall back while sales rose only "marginally". |
The continuing downward trend in prices was underlined by the government's own house price index. | |
The Department for Communities and Local Government (DCLG) said average UK prices dropped by 0.5% in May, and by 1.6% over the past year. | |
Only in London have prices gone up in the past year, the DCLG said. | |
"Average prices decreased during the year in England (-1.3%) and also decreased in Wales (-6.1%), Scotland (-2.5%) and Northern Ireland (-13.2%)," the DCLG reported. | |
It said the average UK house price was now £203,528. | |
London resilient | |
Rics said the number of enquiries from potential new buyers was unchanged while the number of homes put up for sale fell slightly. | |
Rics said the rationing of mortgage funds and economic uncertainty meant the "stalemate" would continue. | Rics said the rationing of mortgage funds and economic uncertainty meant the "stalemate" would continue. |
Alan Collett of Rics said: "With continued uncertainty over the jobs market and the economy, this subdued picture is set to continue." | Alan Collett of Rics said: "With continued uncertainty over the jobs market and the economy, this subdued picture is set to continue." |
"London, however, remains a market apart with both sales and prices showing a greater degree of resilience." | "London, however, remains a market apart with both sales and prices showing a greater degree of resilience." |
'Stable conditions' | 'Stable conditions' |
The Rics survey is based on responses from 272 estate agents who are Rics members, but the survey traditionally has its finger on the pulse of the market. | The Rics survey is based on responses from 272 estate agents who are Rics members, but the survey traditionally has its finger on the pulse of the market. |
"Anecdotal evidence from surveyors suggests that the uncertain economic climate is making transactions more difficult and longer to conclude," Rics said. | "Anecdotal evidence from surveyors suggests that the uncertain economic climate is making transactions more difficult and longer to conclude," Rics said. |
The Rics survey chimes with the latest data published on Monday by the Council of Mortgage Lenders (CML). | The Rics survey chimes with the latest data published on Monday by the Council of Mortgage Lenders (CML). |
It said that in May, the number of new loans for house buyers rose by just 1.7% from April, to 41,500. | It said that in May, the number of new loans for house buyers rose by just 1.7% from April, to 41,500. |
However, this was still 5% lower than the level of mortgage lending recorded in May last year. | However, this was still 5% lower than the level of mortgage lending recorded in May last year. |
Only 15,900 loans were made to first-time buyers, up 0.6% from April but down 2.5% from May 2010. | Only 15,900 loans were made to first-time buyers, up 0.6% from April but down 2.5% from May 2010. |
These buyers were still having to put down deposits averaging 20% of the value of the homes they were buying, reflecting the continued caution of lenders in offering new loans. | These buyers were still having to put down deposits averaging 20% of the value of the homes they were buying, reflecting the continued caution of lenders in offering new loans. |
"There is no evidence of any drastic changes on the horizon or any significant shifts in direction for the mortgage market," said Michael Coogan, the CML's director general. | |
"These stable conditions are expected to continue for the rest of the year." | "These stable conditions are expected to continue for the rest of the year." |
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