Looks like the house price crash may be underway folks .......
Pessimism pervades UK housing market
By Friederike Tiesenhausen Cave and Chris Giles in London
Published: June 14
Estate agents and surveyors were more pessimistic in May about house
prices than at any time since November 1992, the Royal Institution of
Chartered Surveyors reports on Tuesday.
But a depressed housing market and weak consumer spending do not
guarantee a cut in interest rates, Mervyn King, the governor of the
Bank of England, said in a speech on Monday night.
In its closely watched monthly survey, Rics said 49 per cent more
estate agents reported house prices had fallen over the past three
months than said prices were rising, the worst seasonally adjusted
reading for more than 12 years.
The figures suggest the housing market has again weakened sharply,
after a few months when it had appeared to be stabilising.
The reading will disappoint many property professionals who argued
throughout the spring that the market was bound to pick up once the
uncertainty of the general election was out of the way.
Rics says on Tuesday that contrary to expectations of a post-election
recovery: "Uncertainty over the economic climate has begun to dampen
the mood of potential buyers despite the fact that the jobs market
A small recovery in buyer activity, which started at the beginning of
the year, has run out of steam as surveyors reported that overall sales
levels had remained low. Completed sales in May were down 29 per cent
on a year ago and enquiries from would-bebuyers slipped back in
Mayafter having been at avirtual standstill for severalmonths.
The volume of new property coming on the market for sale continued to
rise at a firm pace. Stocks of unsold property were 25 per cent higher
than a year ago but have held relatively steady in recent months.
- posted 14 years ago