Rain fails to put off homebuyers

Interest from would-be buyers in the East Midlands held relatively firm during July, despite the inclement weather, while the amount of new homes coming onto the market continued to fall, says the latest RICS UK housing market survey.

A broadly flat 19 percent more chartered surveyors in the region reported rises rather than falls in demand last month.

Despite the poor weather seen across many parts of the country, it seems that many potential buyers were not deterred.

However, the amount of new properties coming onto the East Midland market continued to drop off during July, as fewer vendors looked to test the summer market. A net balance of 17 percent more chartered surveyors reported falling supply.

This imbalance between demand and supply, which is being compounded by the ongoing difficulties many buyers are experiencing with mortgage finance, did not impact transaction levels in July with 32 percent more chartered surveyors reporting rises rather than falls in newly agreed sales in the area (from -20).

Elsewhere, prices across the UK continued to edge lower last month. 24 percent more surveyors reported falls rather than rises in prices.

Looking ahead, surveyors in the East Midlands are optimistic that transaction levels should improve over the coming three months, with a net balance of 29 percent more respondents predicting rises in activity.

However, unsurprisingly, a more pessimistic outlook exists for future prices, as 29 per cent more surveyors expect prices to continue to fall rather than rise in the near future.