Tuesday, February 23, 2010
Category:
Property
According to the RICS UK Housing Market survey, 32 percent more chartered surveyors reported an increase rather than a reduction in property prices.
This figure stood at 30 percent a month earlier. However, the survey also highlighted that the net balance of surveyors reported that the number of buyer enquiries dropped for the first time in 14 months. In addition, it was reported that the number of new instructions fell for the first time in seven months.
It was found that 20 percent more chartered surveyors reported a reduction rather than an increase in new buyer enquiries, down from the ‘positive reading’ of 18 percent. With regard to the decline in new instructions, it was found that a balance of five percent of surveyors reported this compared to a ‘positive balance’ of 15 percent in December. The survey also showed a drop in newly agreed sales for the first time in ten months, leading to the conclusion that the poor weather adversely affected business.
In fact, surveyors are deemed to be ‘optimistic that these negative signs are a reflection of extreme weather conditions experienced in the early part of the month’. Furthermore, it was revealed that the number of surveyors who are anticipating an increase in property prices has risen from 12 percent to 24 percent. It has also been reported that there has been a rise in the number of surveyors who are expecting sales to ‘pick up’ during the next three months – from seven percent to 24 percent in January.
The survey showed a slight drop in transaction levels in January, with the number of sales per surveying firm falling from 19 to 18. It was also uncovered that the sales to stock ratio fell for the second consecutive month, which is a measure of ‘market slack’ and a ‘lead indicator of future prices’.
RICS spokesperson, Ian Perry, commented: "The cold snap in January clearly has a huge impact upon both supply and demand in the housing market with activity coming to a halt amidst the seasonal chaos. Activity and interest is likely to pick up in the coming months as the market experiences a spring bounce.
"House prices are likely to rise in the short term but if more supply continues to come onto the market, it is possible that the market will run out of steam in the latter part of the year."
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Homeowners who have toyed with the idea of moving house, but have since decided to sit tight as a result of market conditions, could consider taking out a secured loan to transform their current property into their dream home. One of many finance options available, a secured loan for
home improvements could allow borrowers to embark upon a range of projects in and around the home. For example, any necessary repairs could initially be made before redecorating and refurbishing the property to fit in with personal tastes and lifestyles. Homeowners who could do with more living space may even decide to extend their property, whilst those who enjoy spending time outdoors may also chose to have their garden landscaped.
