RICS: Market is in Mexican standoff

RICS has claimed that the UK’s real estate market became trapped in a “Mexican standoff” during October, as buyer demand fell for the sixth consecutive month, the longest streak of falling demand seen by RICS members since 2008. Across the UK, a net balance of -18 was recorded in its residential Market Survey, however, in some areas this fluctuated significantly. In London, 62% of property agents reported a reduction in buyer interest over the month – far above the national average. Just 41% of homes listed on the market in London were sold in October, while the level of available stock increased. The body’s house price balance fell to +20, from +30 in September. The drop was driven by a fall in London to -35, down from September’s -9. Anthony Codling, property analyst at Jeffries, says that there is a significant gap between price expectations and what buyers are willing to pay, a gap “which needs to close”. The trend was not observed in Scotland