The Royal Institution of Chartered Surveyors (Rics) has warned of uncertain times ahead in the UK's property market.
June 6, 2007 (Press Release) --
Reacting to the house price figures released today by the Land Registry, Rics senior economist David Stubbs said that recent accelerated growth in the property market was unlikely to continue.
Interest rate rises and affordability concerns among first-time buyers were likely to negatively affect prices in the future, he said.
"The acceleration in price growth reflects the strength of the market in previous months but does not signal further strength in the future," Mr Stubbs remarked.
"Price rises will moderate as the year progresses. Demand will pull back in the face of higher mortgage interest rates and terrible affordability problems amongst first time buyers."
The Land Registry reported a 0.6 per cent increase in house prices during April, although these figures do not take into account the most recent increase in the base rate in early May.
Chris Newman, director of fast property purchase firm National Homebuyers adds:
"The outlook for the property market looks bleak.
"Vendors will be reticent to sell their properties with the likelihood of a further rate rise shortly and the already evident lack of buyers. This will be met with fewer properties placed on the open market, causing it to 'level'.
"This does not solve any problems for homeowners who need to sell quickly. National Homebuyers guarantees to make a formal cash offer to purchase any property surveyed. We are happy to discuss options that meet the vendor's quick sale needs."
More information about National Homebuyers can be found by visiting www.nationalhomebuyers.co.uk/sellandrentback.html or by calling 0870 979 8118.
Interest rate rises and affordability concerns among first-time buyers were likely to negatively affect prices in the future, he said.
"The acceleration in price growth reflects the strength of the market in previous months but does not signal further strength in the future," Mr Stubbs remarked.
"Price rises will moderate as the year progresses. Demand will pull back in the face of higher mortgage interest rates and terrible affordability problems amongst first time buyers."
The Land Registry reported a 0.6 per cent increase in house prices during April, although these figures do not take into account the most recent increase in the base rate in early May.
Chris Newman, director of fast property purchase firm National Homebuyers adds:
"The outlook for the property market looks bleak.
"Vendors will be reticent to sell their properties with the likelihood of a further rate rise shortly and the already evident lack of buyers. This will be met with fewer properties placed on the open market, causing it to 'level'.
"This does not solve any problems for homeowners who need to sell quickly. National Homebuyers guarantees to make a formal cash offer to purchase any property surveyed. We are happy to discuss options that meet the vendor's quick sale needs."
More information about National Homebuyers can be found by visiting www.nationalhomebuyers.co.uk/sellandrentback.html or by calling 0870 979 8118.
Email
Print
SPAM
