Mon 19 May 2008
Market weak until mid-2009, predicts RICS
Hopeful sellers, buyers and builders alike will be dismayed to learn that numbers of house sales could drop by over a third this year, according to The Royal Institution of Chartered Surveyors (RICS).Property transactions, which are down by nearly 32% from last year, will be the biggest casualty of the credit crunch, says the RICS, and could drop to 40%, while house prices will fall by 5%. A reduction in sales volumes will also impact extensively on sales of household goods and furnishings, as would-be buyers and sellers are forced to stay put in their existing properties.
“The second half of 2008 will prove a difficult period for the housing market,” said Simon Rubinsohn, RICS’ chief economist. “Demand will remain pent-up, with many watching the high street banks for any sign of a softening in lending criteria.”
A poll run by the Financial Times and EC Harris also found that most Brits expect house prices to fall over the next year – 55% are predicting a decline in the market, while 15% foretold a rise.
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