House sales at 31-year low despite increase in buyer enquiries

Posted under News by Alan

Despite increase in the buyer enquiries for the fourth consecutive month, house sales in the UK are down to 31-year low, reports the Royal Institution of Chartered Surveyors (Rics). The rise in enquiries is attributed to continuous fall in housing prices.

As per Rics’ data, property sales in 3 months to February touched the lowest level since it started data recording in 1978. Rics reveals that estate agents could make only average 9.5 sales in last 3 months, down from 9.8 in November 2008. This again is the record low average since 1978.

According to Jeremy Leaf at Rics, though potential buyers are flocking in large numbers to agents’ offices, lack of mortgage finance is causing transaction levels to remain at all time lows.
Rics is urging the Government to expedite implementation of its guarantee scheme  for new residential mortgage-backed securities to revive property market.

National Housing Federation (NHF) has also painted grim forecast about number of new homes being built in England during next financial year. According to NHF, this figure could fall by 50% to 70,000, lowest in last 88 years.

Meantime, Grant Shapps, spokesman for Conservative Housing, claimed that temporary suspension of Stamp Duty did not help in revival of housing market. Back in September 2008, the Government had had announced exemption of stamp duty for properties costing less than £175,000, for twelve months.