13-12-2007

Rics identifies housing market weakness

Figures released by the Royal Institution of Chartered Surveyors (Rics) show a further weakening in the UK's property market.

According to the Rics housing market survey for November 2007, in addition to the country's market conditions being at their "loosest" state since 2005, the decline in new sale agreements has accelerated to a pace last seen in April 1999.

"Sentiment in the housing market deteriorated further in November, with the balance of surveyors turning the most negative since May 2005," said Rics, an organisation with a history going back to 1868. "Past interest rate increases … combined with a tightening in mortgage lending criteria are preventing many would-be buyers from getting on to the housing ladder," it added.

However, despite the continuing difficulties of first-time buyers, the report notes that over a three-month period until November 2007, the number of surveyors identifying a fall in house prices - compared with those witnessing a rise - increased by 40.6 per cent.

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