The Elite Ayrshire Business Circle

The Elite Ayrshire Business Circle

Tuesday, 8 November 2011

RICS reports Scottish housing market in early hibernation

The Scottish housing market went into early hibernation as fewer properties came on the market and the number of sales dipped in October says the latest RICS UK Housing Market Survey.


[Pictured: RICS Scotland director Graeme Hartley.]

Sellers shied away from putting their homes on the market and the number of buyers enquiring about property remained unchanged. Chartered surveyors suggested uncertainty in Europe spilling over to UK economy and restricted mortgage availability are still impacting on the market and making sellers nervous.

Just over half (53%) of surveyors said house prices had fallen in October while 47% said they had stayed the same. None said they had risen. This is the first time since March 2009 that no surveyors reported a monthly rise in house prices.

October is a very different picture to September which saw a flurry of activity from sellers putting their homes on the market and a small increase in buyers.

As winter sets in, chartered surveyors expect the Scottish housing market to remain subdued with fewer sellers, less potential buyers and therefore a drop in sales.

RICS Scotland director Graeme Hartley said: “The Scottish housing market went into early hibernation in October with prices falling and sales dipping. With the chaotic events in the euro area threatening to spillover to the UK and banks still imposing tough conditions on loans to first time buyers, any recovery in sales is still likely to be relatively modest. This will inevitably leave many people who would like to own a home unable to access the market.”

RICS housing market survey is the longest running monthly survey of house prices in the UK, collecting data since January 1978.? The survey is cited by the Bank of England's monetary policy committee at its monthly interest rate setting meetings.

About RICS

RICS is the world’s leading qualification when it comes to professional standards in land, property and construction.

In a world where more and more people, governments, banks and commercial organisations demand greater certainty of professional standards and ethics, attaining RICS status is the recognised mark of property professionalism.

Over 100 000 property professionals working in the major established and emerging economies of the world have already recognised the importance of securing RICS status by becoming members.

RICS is an independent professional body originally established in the UK by Royal Charter. Since 1868, RICS has been committed to setting and upholding the highest standards of excellence and integrity – providing impartial, authoritative advice on key issues affecting businesses and society. RICS is a regulator of both its individual members and firms enabling it to maintain the highest standards and providing the basis for unparalleled client confidence in the sector.

www.rics.org

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