RICS survey given negative spin bymedia

Dec. 16, 2010 - PRLog -- Here we go again. Another seemingly suicidal, generalised missive from the RICS reported by the BBC devoid of context.

Apparently, the housing market is being supressed by a lack of first-time buyers and concerns over the economy, according to surveyors. More reported prices falling than rising in November as also reported in October.

New enquiries, new sales and average sales per surveyor all fell in November, the survey found. Prices were falling across the UK and activity remained slow. It sounds like a case for a suicide watch or a timely call to the Samaritans.

The survey, which the BBC claim is generally well regarded in the industry, echoes the views of recent reports from lenders such as the Halifax and the Nationwide. We add that it is generally well regarded, by the surveyors who contribute. We don't regard it well unless it is reported in specific geographical context.

The BBC reports: The survey found that 43% of the surveyors noted that prices were relatively stable over the past three months, although many said prices had fallen slightly in November. There is little reported in the press as to regional variations.

The lack of demand, especially from first-time buyers struggling to get a mortgage, was in evidence from the falling number of new-buyer enquiries. This has now fallen for six months in a row.

"Despite some better economic data, fears over how future spending cuts will impact on the jobs market are clearly still weighing heavily on potential purchasers' minds, with many deciding to wait and see until the new year," said Rics spokesman Ian Perry.

"Meanwhile, the lack of mortgage finance continues to deter first time buyers."

Individual surveyors have reported that the picture for the housing market into next year could be similar.

"The new year looks to be slow with little buyer confidence," said Derek Coates of Liverpool.

Stuart Allan, of Bishop Auckland, said: "We are now entering the winter season and some vendors are putting off the sale of their properties until the spring."

Well, what happens in places hundreds of miles from our patch is of little interest to our customers. We can hear it now. "So, how is the market?" asks a potential vendor. "Pretty rough up in Liverpool" replies our valuer in Hammersmith.

For the avoidance of doubt, this is not attack on the RICS as their report will contain more detail. The public however are unlikely to ever read it in full and instead repy on the media to extract pertinent key facts.

The reporting by the press of generalised opinion from an unquantified number of respondents only serves to fuel the undermining of the market and perpetuates the lack of confidence cited as one reason for these statistics. There is a certain irony in a report that claims lack of confidence in the economy is a problem then re-iterates that prices continue to fall. Surely our duty is to support the market. In the depths of recession, deals were done. Why do the BBC not report good news such as Estate Agents expanding, competitive bidding, recruitment of new staff creating new jobs etc.

In the areas of London we cover, these claims simply are not accurate. November was a hugely successful month and Bushells biggest problem was lack of stock. Applicant levels were up year on year. 8th December was a landmark day with more offers received than on any day in 2010. One negotiator in Fulham recorded 5 offers and agreed 4 sales that happy Wednesday alone.

Some surveyors may have Estate Agencies, but many Estate Agents don't have surveyors. Our figures are entirely at odds with the RICS claims and we are struggling to meet demand. I am not suggesting that the RICS are wrong, I am suggesting that generalised overview is misleading as the average fails to represent the extremes it represents. Further, many statistics recorded are long after the point of sale, i.e when the offer is actually accepted. Many records reflect completed deals, often 2-3 months later.

Mark our words, in February / March, the BBC will report that transaction fell and activity ground to halt. They will cite a myriad of reasons from the economy, to lending, confidence to job security and tube strikes. Bushells, however, call this phenomenon 'Christmas' - and it happens every year.

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Bushells is one of London's leading Estate Agents. Founded in 1937, we are one of the most successful estate agents in London. We are members of all recognised industry bodies including ARLA, TPO and NAEA.