RICs forecast for 2010
The forecast says that transactions are likely to rise to a monthly average of 70,000 from 55,000 to 60,000 currently.
Supply should continue to increase in the early part of 2010 but will struggle to keep pace with demand providing a platform for further house price rises. Significantly, the inventory of stocks on surveyor’s books still remains close to historical lows. However, the narrowing in the gap between supply and demand will gradually begin to exert a greater influence on the market.
Commenting, Simon Rubinsohn, RICS chief economist, said: “The imbalance between supply and demand will continue into the early part of the new year resulting in some further house price gains. However, the combination of more available property and the beginning of the exit strategy from the big stimulus programmes that have helped support the economy will gradually exert a greater influence. Transactions levels are likely to increase, fulfilling the Christmas wish list of many agents throughout the country but first time buyers are likely to continue to struggle to procure finance from lenders without the help of generous relatives.”