In its housing market survey, RICS revealed sales are up and purchase enquiries had risen for the second consecutive month, with prices declining at the slowest rate in five months. While sales were still down 18 per cent compared to 2004, they were up from February 2005.
However, prices still slipped across the country, apart from Scotland and the North West where they increased. The number of chartered surveyors reporting price falls for July fell to 36 per cent, down from 42 per cent in June, but they expected prices to drop again. Despite this, the outlook was at its least negative in a year.
The market is still believed to be a buyers’ one as the stock of unsold properties remained relatively high. July’s rise in properties has ensured that potential buyers have plenty of choice and the upper hand in negotiations. However, the growth in sellers slowed to its lowest rate in almost a year.
RICS housing market spokes-person Jeremy Leaf said: “Would-be buyers have become more confident as a result of the rate cut while the economy continues to deliver steady growth despite the past year’s slowdown. The August cut will support a further rise in buyer activity though there is little prospect of a renewed house price boom anytime soon.”
Andy Frankish, managing director of Mortgage Talk, said he has seen similar trends. He commented: “Nothing has changed except confidence. Activity is key. Properties are still going on sale and more buyers are coming to the market.
“Prices aren’t falling, rather we’re seeing more sellers pricing properties realistically. The market needs a period of stability. I don’t think it will accelerate – it doesn’t need to.”
