Housing market feels impact of financial pessimism

Economic uncertainty and lack of mortgage lending made an impact on property sale levels in August, according to a new survey.

The Royal Institution of Chartered Surveyors (RICS) this week published the UK Housing Market survey (September 13th). In it the group states that sales seen by their members over the first three months to August dipped slightly to an average of 14 per month. This puts sales on a par with June 2009 levels.
In addition, the level of stocks fell to 67 compared to 70 the previous month. In response to these statistics, the majority (79 per cent) of respondents stated that sales most likely remained subdued to economic uncertainty. While 70 per cent said limited availability of mortgage finance was having a negative impact.

RICS housing spokesperson, Alan Collett, said: “[The] risk is that the worsening economic picture will gradually begin to have a more material impact on sentiment and discourage potential house purchasers even where mortgage finance is available.”