Worryingly for the mortgage broker and prospective mortgagees, the UK housing and mortgage markets faced a stalemate throughout June,
with demand failing to pick up after the problems of May and the supply of new property entering the market also fell. The latest Royal Institute of Chartered Surveyor Housing Market survey has outlined the troubles being felt currently in the property and mortgage markets.
The demand for new property showed little to no change in June, as new buyer enquiries reached a net balance of 0% within the industry. However, this is still a 1% increase on figures seen in May 2011. Demand continues to be flat and has been for the last six months at least.
There are a number of reasons for this. There continues to be continued uncertainty over the wider UK economy and the ‘wait and see’ attitude being employed by many within the UK has seen the UK housing market continue to stutter. Properties are still selling but only if they are priced realistically, with many individuals selling property setting their property price as too high for the current market. In further worrying news, 28% of surveyors within the UK believe property prices will continue to fall with demand stagnant for at least the next three months.
RICS housing spokesperson, Alan Collett, said: “The housing market was pretty flat during June. Buyer interest in purchasing property remains relatively low across much of the UK and the volume of new stock coming to the market has slackened. With continued uncertainty over the jobs market and the economy, this subdued picture is set to continue. London, however, remains a market apart with both sales and prices showing a greater degree of resilience.”
However, there are some positives which could be made from the month. Nrwly agreed sales edged up marginally throughout June, with 6% more surveyors than in May claiming that sales had risen rather than fallen. The London property market also continues to prosper, with an increasing number of foreign national investors purchasing property for various reasons within the Capital. A pick up in the housing market will be a benefit to all, helping out the prospective mortgagee, the mortgage lender and the mortgage broker.