Property sales slump
Transactions in the housing market are at their lowest since the Royal Institution of Chartered Surveyors began surveying its members 30 years ago.
In its monthly snapshot out today, Rics says prices continued to fall in June but at a slightly slower pace than in the previous two months. The survey showed an average of 15.3 sales per surveyor over the past three months - the lowest figure recorded since the survey began in 1978.
The Rics house price balance improved slightly but remains very depressed. It showed that 88% more surveyors reported a fall than a rise in house prices, a decrease from 92.2% in May and 94.2% in April. Surveyors in the West Midlands were unanimous that house prices are falling.
Rics blamed the inability of many buyers to find a mortgage now that lenders have increased mortgage rates and cut maximum loan-to-value rates.
The survey suggested demand was bottoming out. It said 35% more surveyors reported a fall in buyer inquiries last month, compared with 50% in May and 69% in April. Surveyors report that buy-to-let investors are entering the market to take advantage of rising rents and "predatory buyers" are looking for bargains.
Jeremy Leaf, a spokesman for Rics, said: "With demand so low, would-be buyers are negotiating from a position of strength. Even in a weak market, there are always opportunities for investors and buyers to profit and some are starting to circle for bargains. However, transaction levels remain incredibly low, with many buyers cut out of the process by tight lending conditions."
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