Housing market recovery

Posted 09/06/2009

Consumers and companies in the property sector have been advised to avoid getting too optimistic about the prospect of a housing market recovery.

This week, the Royal Institution of Chartered Surveyors (Rics) expressed optimism after many of its members reported an increase in new buyer enquiries.

However, FirstRung believes the organisation is being too hopeful and has warned that its expectations could be “sadly dashed”.

Paul Holmes, chief executive of the organisation, commented: “I still think there is a considerable correction to take.

“What we are witnessing now is a market that has deflated to the point that it is now flat.”

This, he stated, would continue to impact on average property values across the UK, which prompted him to say that the Rics study should not be seen as a sign of recovery.

Mr Holmes added that new buyer enquiries need to translate into actual sales before anyone can say the housing market is picking up.