Demand for homes in the West Midlands drops

Jul 13 2010 by Graeme Brown, Birmingham Post

Demand for homes in the West Midlands fell for only the second time since the latter part of 2008 last month, according to new research.

RICS UK Housing Market survey shows house price increases are still slow-moving in the West Midlands with 12 per cent more chartered surveyors reporting a fall rather than a rise in prices last month, compared to five per cent in May.

Across the rest of the UK, surveyors are still reporting rises in most parts of the country but buyer interest fell for only the second time across the UK since October 2008 reflecting in part heightened uncertainty over the near term outlook for the economy.

In the West Midlands the balance of chartered surveyors reporting a fall or a rise in new buyer enquiries stood at zero in June, down from a strong 22 per cent reporting rises in May, and is higher than the national average of a negative five per cent.

Looking ahead, surveyors feel that the larger number of properties coming to the market should help bolster activity which has been depressed partly because of a lack of choice for home buyers.

Ben Hudson, RICS West Midlands spokesperson and director of Greenhill & Brownfield, said: “A lack of properties has been one factor holding back sales in the housing market, as well as the recent financial uncertainty surrounding the Budget, but the abolition of HIPs is helping to belatedly address this issue.

“We would hope this would be reflected in higher sales numbers in the near future but with the holiday period now upon us, this may be slower coming than we’d like. However, with supply of property now beginning to outstrip demand there is a risk of some modest slippage in prices during the second half of the year.”