January 13, 2012 | Author

Author Alec Hanson

The RICS Housing Market Survey for December saw sales activity ending the year a little stronger than earlier in 2011 – although still below historical averages. On the whole this message aligns with those for mortgages approvals and house prices.

Although the average number of sales per surveyor was slightly down at 15.2 from last month, this still represents the best highs since August 2010.

However the sales expectations net balance was a little more uncertain at zero, meaning the future was a little less certain.

The headline net house price balance however remained in negative territory at-16 – although since July 2010 this represents the highest reading (or smallest negative value). What this means is that 16% more surveyors say falling house prices versus those who saw rising housing prices.

The sales to stock ratio, which captures the degree of slack in the market, edged up to 22.5%. Although this is the best reading since last April, as recently as the middle of 2007 it stood above 40%. Significantly, price expectations are still fairly downbeat with the net balance for the next three months slipping from –22 to –24.

Regional

Regional disparity on prices remains with London the only region recording a positive net balance for both current prices and price expectations.

The most negative price balances continue to be recorded in the West Midlands (-47) and Yorkshire and Humberside (-43). Northern Ireland was the next weakest area with a reading of -39. The new buyer enquiries series was positive in most parts of the country although a number of regions have been consistent in registering negative net balances for a number of months now. These include the East Midlands, Yorkshire and Humberside and the South West although in the latter two the falls have been modest