21 August 2001, 08:27 UK housing market strong but tentative signs of easing seen - RICS
LONDON (AFX) - There are tentative signs that a slowdown in the UK
housing market is imminent although the strong growth seen so far has
yet to fall off, according to the latest survey on the housing market
from the Royal Institute of Chartered Surveyors.
A net balance of 54 pct of chartered surveyor estate agents
reported price rises in the three months to July period. The figure is
the highest since March 2000, the survey revealed. But while demand has
so far outstripped supply, many chartered surveyors say that prices are
now beginning to stabilise as enquiries fall off, suggesting that
buyers may be starting to balk at further rises.
The average number of sales per chartered surveyor estate agent in
July was 33, up from 31 over the last three month period, but
contributors to the survey said that the number of new enquiries had
eased in July.
The average number of houses on agents books rose slightly to 72,
but was still down from 74 a year earlier. Price growth was strongest
in London and the South East. RICS national housing spokesman Ian
Perry, said: "There are real signs coming from the marketplace that the
housing boom may have reached its peak. Many chartered surveyors are
reporting a levelling off in prices, some even a downturn in enquiries.
"Recession in manufacturing is now a fact and the service sector
shows signs of following. Although consumers are still buying in a
strong market, fuelled by the surprise interest rate cut in August, the
high prices coupled with fears of unemployment are certain to make many
potential customers think again in the coming weeks. This is bound to
be reflected in the market," he added.
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