Housing market fails to bounce back, says RICS
The hope for a 'spring bounce' in the West Midlands housing market failed to occur during May, according to the latest RICS UK housing market survey.
Depressed activity levels in the sector were attributed to fears over the economy's stability and lack of mortgage finance.
RICS said newly agreed sales slipped back during May, with 19 per cent more surveyors reporting sales fell rather than rose.
The sales to stock ratio –an indicator of the balance between demand and supply – fell to 17 per cent.
The survey said there was "little sign of a renewed appetite to view property" in May. Many surveyors in the West Midlands cited the bank holidays as the reason for the fall in demand.
Richard Franklin, RICS West Midlands spokesman, said: "Buyer interest in purchasing property remains low across much of the West Midlands, however there notable hotspots. Meanwhile, uncertainty over the economic outlook remains, especially job security which is as important as the constraints of mortgage lenders in depressing demand.
"As a direct consequence, the appetite to rent is continuing to grow rapidly in the region. With little new supply coming onto the market, rents are rising and this is stimulating investor interest for certain property types, including small modern houses."
