RICS: May housing activity stalls

The hoped-for spring bounce in the housing market failed to occur during May, as fears over the economy and lack of mortgage finance continued to depress activity levels, according to RICS.

The Royal Institute of Chartered Surveyors' (RICS) latest housing market survey showed new enquiries from potential buyers fell slightly during May, down to a reading of -2. The reading for April was level, which improved on the March reading of -6.

RICS housing spokesperson, Ian Perry said: "Buyer interest in purchasing property remains flat across much of the country and there is little sign of this changing any time soon. Uncertainty over the economic outlook remains as important as the availability of mortgage finance in depressing demand.”

Newly agreed sales fell with just 5% more surveyors reporting sales rose rather than fell. Meanwhile, the average number of completed sales per surveyor fell to just 14.7, the lowest reading since January.

The sales to stocks ratio, a key indicator of the balance between demand and supply, fell to below the long-term average of 33.5%.

A total of 28% more surveyors reported house price falls than price increases, the lowest reading since the beginning of this year. London was the only region that saw more surveyors reporting price rises rather than falls.

The price balance remains negative in Wales, Scotland and Northern Ireland and the outlook from surveyors shows expectations for future sales fell.