House sales steady but prices fall

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by Gill Montia

UK house sales remained steady in December, despite a rise in the amount of new stock coming to market and no signs of a revival in mortgage lending.

According to the latest housing market survey from the Royal Institution of Chartered Surveyors (RICS), the average number of completed sales per respondent stood at 15.2 in the final quarter of 2011.

However, looking ahead, sales expectations are downbeat with RICS members suggesting that unrealistic pricing on the part of some vendors may hinder transaction levels, particularly as prices across much of the country have continued to fall.

London was the only area to see price increases in December while respondents in the West Midlands and Yorkshire and Humberside reported the biggest drops.

At the same time, new instructions edged up for the third consecutive month during December, with 12% more respondents reporting rises in homes coming onto the market.

London saw the greatest increase in supply, with 38% more surveyors reporting a rise – the highest figure since January 2005.

RICS housing spokesperson, Ian Perry, observes: “The increasing number of prospective sellers who placed their homes on the market in December is a positive development as a lack of stock has been a big issue in some parts of the country, but with sales expectations remaining flat, it is important that vendors are realistic in their pricing if they wish the sale to go through in good time.”