Housing market slump could continue in 2011-RICS

The housing market is being stifled by a lack of first-time buyers and economic confidence, the Royal Institution of Chartered Surveyors (RICS) says.

Its comments come amid fears the housing slump could continue into the New Year.

More surveyors reported prices falling than rising in November, which was a similar picture to the previous month.

Meanwhile, new buyer enquiries, newly agreed sales and average sales per surveyor also fell during the month. Prices fell across the UK and activity remained slow.

The lack of demand, especially from first-time buyers struggling to get a mortgage, was in evidence from the falling number of new-buyer enquiries which has fallen for six months in a row.

Individual surveyors have reported the picture for the housing market into next year could be similar.

RICS spokesperson, Ian Perry says: "There was little change in the housing market in November; prices continued to edge lower and sales levels generally remained subdued.

"Despite some better economic data, fears over how future spending cuts will impact on the jobs market are clearly still weighing heavily on potential purchasers' minds."

However, the fourth quarter is generally a slow time of year for the housing market and surveyors believe some sellers will wait until the New Year to put properties on the market.