Housing market grinds to a halt as number of homes on market hits record low

By Isabelle Fraser

The average estate agent has just 43 homes on its books

The housing market has slowed further as the number of homes on the market hit a fresh low, according to the Royal Institution of Chartered Surveyors.

Estate agent branches each have on average just 43 unsold properties on their books, and 13pc more respondents reported seeing a fall in new listings of properties rather than a rise in March.


Rics' market survey found that activity in the market was subdued, with new buyer inquiries and agreed sales remaining low as well.

Across the country surveyors were less positive than in previous polls about the prospect of house price rises over the next 12 months: a net balance of 24pc more respondents predicted a rise than a fall, which was lower than the 37pc in February. But there is a consensus that any rise in house prices will be lower than previously thought.

Rics' survey provides a helpful snapshot of the market and is a useful of bellwether for future price changes.

House prices in the capital have been falling for some time, but there is a glimpse of positive news as 14pc more respondents from London forecast house prices will be higher, rather than lower, in 12 months' time. Buyer interest has also started to increase in the capital, as falling prices bring more homehunters to the table.

Simon Rubinsohn, Rics' chief economist, said: “High-end sale properties in Central London remain under pressure, while the wider residential market continues to be underpinned by a lack of stock. This includes rents, with rents away from the capital generally moving higher as demand outstrips supply.

“For the time being it is hard to see any major impetus for change in the market, something also being reflected in the flat trend in transaction levels.”

While sales did rise in a few areas, such as Wales, Scotland and Northern Ireland, it was outweighed by low levels in the rest of the country; those polled said they expected the level of transactions to remain subdued.

Brian Murphy, head of lending for the Mortgage Advice Bureau, said that "the market has found a level that, unless consumer sentiment changes radically, could form the basis of a ‘flat’ market over the coming months".

"This in itself is perhaps not a negative situation, as a calm and steady picture overall would benefit many, particularly given current political and economic factors," he added.


http://www.telegraph.co.uk/property/house-prices/housing-market-grinds-halt-number-homes-market-hits-record-low/