UK housings open door to buyers but buyers refrain |
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Published
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Wed, 16 Mar 2005 01:00
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Despite estate agents having ample homes with them to choose from, the UK Housing market is in a slump. That is because the buyers have kept a distance from properties on account of the apprehensions regarding the rise in interest rates.
In fact, The Royal Institution of Chartered Surveyors stated that the agents had the highest number of houses coming to them in two years, and 32% higher than last year. Therefore, there was wide choice available for buyers’ and it was totally the kind of market they would want to be in.
| However, since the proportion of buyers is considerably low, the property prices are also being expected to dwindle moderately in the near future. The RICS went on to say that buyers were actually maintaining a low profile regarding a house purchase and were simply watching the interest rate graph carefully.
The Office of the Deputy Prime Minister (ODPM) further revealed that the annual rate of house price inflation in the UK had fallen by 0.1% in January and to 10% from 10.7% the month before. Therefore, the ODPM had witnessed a house inflation fall for a third month in a row.
The lull in the housing market is also being attributed to the four interest rate hikes in 2004 and the Nationwide, Halifax and the Land Registry, all have agreed to the present decline in the sale of houses below the levels of late 2003 and the first half of 2004.
Overall, the UK property market remains a sensitive issue with varied opinions and predictions pouring in. While some experts predict a hefty 20% price fall, others believe that the market will take a gentler downturn instead of rushing towards a severe crash.
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