Housing market lacking in activity

House Prices

Property prices show that homes in London are rising in value in contrast to other regions.

The housing sector is relatively stagnant across the whole of the country.

The property market is failing to make a significant improvement, according to the Royal Institution of Chartered Surveyors.

In its latest report, based on last month’s figures, sales and property prices remained at a steady level with fewer buyers showing an interest in making a purchase.

The study highlighted that regional differences in the housing sector are still apparent, adding weight to the findings of other surveys that outlined the same concerns – London experienced a rise in prices in contrast to other areas of the UK that suffered through a decline or period of stagnation.

Rics housing spokesperson Ian Perry said: “The rather negative outlook for property prices across the UK seems to better reflect the general economy than the micro climate of London”.

He added: “The low level of buyer interest in many parts of the UK continues to impact on the market, resulting in some downward pressure on prices. With the prospect of forthcoming interest rate rises and continued shortage of mortgage funding, it seems that overall recovery for the national housing market is still some way off”.

Just over 250 surveyors participated in the study. Despite the small number of respondents, the study is generally believed to be a trustworthy indication of the state of the British housing market.

Rics said: “Within England and Wales, a clear North South divide is emerging, with London being the only region recording rising prices, demonstrating that the capital is still operating under different market conditions to the rest of the country”.