Economic Gloom Hits Housing Market

RICS UK Housing Market Survey

RICS UK Housing Market Survey

The RICS UK Housing Market Survey for August released today reports the housing market remaining subdued and continuing to be caught by the overall economic gloom.

The overall net price balance for housing edged down further into negative territory, from -22 to -23.

This means that 23% more surveyors recorded falling rather than rising house prices.

As with previous months though the fall that has been seen by surveyors remains small, with 75% of those seeing it within the 0-2% range.

Price Expectations

Price expectations amongst surveyors fell quite substantially from -13 to -23, with Sales expectations remaining positive and indeed edging up from +16 to +17


Regionally London continues to fair well with a positive price balance of 37. The next best region was the North West, however the price balance was still negative at -13.

The lowest regional balance was West Midland (-63) followed by East Anglia (-62).

Price expectations over the next 3 months in the regions were very similar with London around 10% balance, followed by North West at approx -4%.

West Midlands and East Midlands faired the worst.

Main Factors

Unsurprisingly the main factors seen by respondents was the continued level of economic uncertainty. However the lack of mortgage availability was a close second.

Commenting, RICS housing spokesperson, Alan Collett, said:

“For the time being, our indicators suggest that demand for homes remain broadly steady, albeit at relatively low levels, despite the renewed bout of economic gloom. However, 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. ”

Alec Hanson

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