Rics says property sales at 30-year low

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by Lin Freestone

The latest figures from the Royal Institute of Chartered Surveyors (Rics) reveal that the number of property sales per surveyor fell to less than one a week in September. The average number of transactions carried out by each surveyor over the last three months is now at 11.5, a 30-year low.

London has been hardest hit by the fall, with chartered surveyor estate agents reporting only eight sales on average over the past three months.

Nationwide, 91% of estate agents saw prices fall over the preceding three months.

Enquiries from potential buyers rose to the highest net balance for 16 months. Only 17% more surveyors reported a fall rather than a rise in new buyer enquires In September, compared to 27% in August.

One of the reasons for the rise in enquiries may be as a result of the clarification of the government’s plans to raise the starting point for stamp duty on property sales to £175,000 as a temporary measure. This uncertainty clearly deterred buyers from making a move during the summer months.

Surveyors in the South West recorded the greatest increase in new buyer enquiries, with 12% seeing an increase in demand.

Rics has stated that only those with significant finances are in a position to access the market. The housing market continues to hold its breath and unless mortgage liquidity improves, the market is likely to remain dormant for some time to come.

A spokesman for the Institute speculates that, following the recent turmoil in the financial markets that has dented confidence, the re-capitalisation of banks by the government this week could be accompanied by increased lending to home owners.

This raises the possibility that the lack of mortgage finance that has so damaged the housing market might be eased.