-RICS UK Jun-Aug Net House Price Balance -19 vs -23 in May-July

LONDON (MNI) – House prices recovered somewhat and sales picked-up
in August, despite the distraction of the Olympic Games running that
month, the Royal Institution of Chartered Surveyors survey shows.

The headline net price balance for the three months to August rose
to -19 from -23 in July, with the latter the lowest reading since the
-27 recorded in June last year. One housing market activity indicator,
the newly agreed sales balance, surged to 5 from -18 in July but new
buyer enquiries fell, with RICS saying fewer people spent time looking
for a property to buy in the Olympics month.

Other activity indicators also recovered strongly. The new vendor
instructions balance rose to 0 in August from -12 in July. The forward
looking new buyer enquiries balance dropped, however, to -9 from -4. The
sales-to-stock ratio rose to 22.5 in August from 22.2 in July.

Surveyors were less downbeat about the price outlook. The 3-month
price expectations balance rose to -13 from -21, with the 12-month price
expectations balance rising to -17 from -24.

The RICS survey, based on the balance of surveyors reporting rises
or falls in prices and activity, is a measure of how widespread
movements are rather than showing their magnitude.

Other surveys have shown mild house price deflation. The August
Halifax house price index showed prices down 0.4% on the month and down
0.9% on the year. The Nationwide survey showed house prices rose 1.3% on
the month in August but were down 0.7% on the year, and looking through
the monthly volatility RICS sees a fairly stable housing market.

“Little changed in the housing market last month. Despite the
Olympics taking centre stage throughout much of August, it didn’t have
any real impact on the proportion of sales going through.
Understandably, the amount of people out looking at property fell away
slightly but, generally speaking, demand held up fairly well,” Ian
Perry, RICS spokesperson, said.

-London newsroom 0044 207 862 7491; email: drobinson@marketnews.com

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