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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