LONDON (MNI) – Activity in the UK housing market slowed in April
as the boost from temporary factors such as the expiration of the stamp
duty exemption on some properites and unusually mild weather in March
waned, according to the April RICS Housing Market Survey.
The headline price net balance in April slipped from -11 to -19
i.e. 19% more surveyors recorded price falls rather than rises.
Following the upturn in activity seen towards the expiry of March’s
stamp duty holiday, transaction levels entered negative territory for
the first time since September, as 6% more respondents across the UK
reported decreases rather than increases in transaction levels.
According to RICS, demand from potential buyers was relatively flat
during April as 5% more surveyors reported increases rather than
decreases in new buyer enquiries, down from +10% in March.
The survey shows that the the three month price outlook (seasonally
adjusted) declined in April, reflecting the still fragile level of
confidence in the market. RICS said that anecdotal evidence from
surveyors suggests the recent announcement of the economy re-entering
recession has been the main reason for the less upbeat outlook.
Commenting on the data, Peter Bolton King, RICS housing
spokesperson said that it is unsurprising to see that prices across much
of the country are continuing to fall.
“Renewed concerns over the economy and talk of a double dip
recession dominating the headlines in recent weeks may well have served
to undermine consumer confidence. What’s more, the continuing lack of
affordable mortgage finance is still hindering many first time buyers
who cannot afford to get a foot on the property ladder,” he added.
–London newsroom 0044 207 862 7491; email:ukeditorial@marketnews.com
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