UK housing market is lacklustre, says Rics

House keys The housing market has suffered from a squeeze on first-time buyers

Activity in the UK housing market remains "in the doldrums" with little chance of a pick-up soon, according to surveyors.

Interest from new buyers and numbers of homes coming onto the market were "lacklustre", the Royal Institution of Chartered Surveyors (Rics) said.

It mirrored other surveys in suggesting that the market in London was different from the rest of the UK.

Only in the capital had prices risen in June, surveyors said.

However, they did suggest that this price rise had slowed down since the start of the year.

A recent report by the Land Registry said that prices in London increased by 7.7% in the year to the end of May, taking the price of the typical home to £365,359.

First-time buyers

A growing proportion of surveyors polled by Rics expected prices to drop in the next 12 months.

"The housing market did not manage to turn a corner last month and activity remained in the doldrums," said Simon Rubinsohn, RICS chief economist.

"Although there is some positivity that the amount of sales going through is going to see an increase, it is unlikely that we will see any real movement until purchasing a property is more affordable and accessible for the likes of first-time buyers."

This group has found that lenders have been a lot more choosy over whom they offer mortgages to, declining applications to people who cannot offer a deposit or who have some black marks in their credit history.

Meanwhile, housebuilder Galliford Try said that the market had been relatively stable recently.

In a trading update, the company said that the increase in the number of its plots was concentrated in the South East of England, where the market was stronger.

More on This Story

The BBC is not responsible for the content of external Internet sites

More Business stories

RSS

Features

  • NS Savannah, 1962Nuclear dream

    The ship that totally failed to change the world


  • Ed Miliband takes a selfie at a Cambridge hairdressersNo more photo ops?

    Why is Ed Miliband drawing attention to his public image?


  • Espresso cup7 days quiz

    Which city serves the strongest cup of coffee?


  • Glasgow 2014 quaichs and medalsQuaich guide

    What do the Scottish gifts given to Games medallists symbolise?


  • Malaysian plane wreckage in UkraineFlight risk

    How odd is it for three planes to crash in eight days?


BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.