Activity to remain muted in the coming yearWednesday, 22 December 2010 03:54
The housing market is expected to remain subdued in 2011, with low activity levels and little price growth or deflation, according to the annual forecast from the Royal Institute of Chartered Surveyors.
Sales volumes in 2011 are expected to remain around the 900,000 mark recorded in 2010, mainly due to the problems with mortgage financing. The high deposits required are unlikely to turn out to be a temporary phenomenon, the report adds.
On a regional basis, London and the South East are likely to outperform the rest of the UK once again, with the North West and Northern Ireland lagging behind.
The main problem is likely to be rising public sector unemployment, which is likely to cause price falls in the areas that are heavily dependent on the state for jobs.
Those living in the top quarter of homes by value should fare the best, as the RICS predicts that this prime market is likely to be protected against significant price drops next year.