The latest UK Housing Market survey from the RICS again shows regional variations when it comes to house prices.
In London, there was a positive reading in February as 14% more surveyors reported increases rather than falls. Nationally however the picture was very different with 26% more surveyors reporting that values decreased rather than rose.
London, Scotland, the South-West and Yorkshire and Humberside were the best regions for newly agreed sales whilst sellers in the East Midlands, Wales and the East of England struggled badly.
Surveyors reported that there is still a distinct lack of confidence amongst buyers and this is causing demand to remain at historically low levels.
The RICS’ housing spokesman, Jeremy Leaf, said the general mood in the housing market remains flat even though a more positive picture is emerging in some areas of the UK. It appears that there is an increasing variation in the UK’s housing market with the Capital and the South East doing well at the expense of the rest of the country.
He pointed out that we have yet to experience the full impact of the government austerity measures which will probably lead to further variations in regional housing markets. Add to that the worries associated with interest rate rises and the lack of available contractor mortgages and the housing market to could be in a bumpy ride for some time to come.
The survey also found that across the whole UK, 12% more surveyors are expecting sales to rise rather than fall, but this expectation was reversed in the North West, West Midlands and Yorkshire and Humberside. When it comes to price rises, only London surveyors expect to see an increase in the coming months.
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