RICS Website report extracts taken in January 2010

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Well done Scotland!

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Chartered surveyors are the only professionals by law able to carry out the single survey, valuation and energy report in the Home Report. A recent survey of home owners/buyers concluded that Scottish buyers and sellers are, without a doubt, benefitting from the Home Report – says RICS Scotland as the scheme passes its 1st anniversary (in December, 09).

Most properties being put on the market for sale require a Home Report by law, commissioned by and paid for by the seller. New builds are one of the few types of property that do not require a Home Report.

The average cost of a Home Report for an average property in average condition is around £430 plus vat. This is much lower than the £1000 suggested in 2008 by groups that were against the Home Report before and at its inception.

There is no doubt the Home Report has benefitted buyers and sellers over the past 12 months. The Home Report offers clarity to buyers and sellers about what the property is worth and what condition it is in right from the start and that’s what the Home Report set out to do. The Home Report was not intended to miraculously fix the housing market but as our survey of chartered surveyors shows, it has certainly not hindered the market.”

Graeme Hartley, director of RICS Scotland

These figures make clear why it is so important to have a Home Report. This simple tool, which doesn’t cost a fortune, has given would-be buyers – about to take the biggest financial leap of their lives – the best possible information upfront. And it has brought in its gift a host of other benefits. Buyers can now keep hold of their savings for deposits, without having to shell out for surveys on properties they don’t get to buy. There is also a much more clarity about the value of a house, with the virtual end to the unrealistic ‘offers-over’. For sellers it’s proving a great way to attract inquiries from potential buyers and guide them on how to prepare the property for sale. In the round, its good news for everyone.”

Alex Neil, Housing and Communities Minister

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Arts & Antiques outshines all!

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The rebound in the arts and antiques market continues to gain momentum. RICS publishes the results for the UK Arts & Antiques Survey Q4 2009.

Prices in the arts and antiques market continue to rise with silver and jewellery leading the way, whilst contemporary art came back into favour following a year of price falls, says the latest survey from RICS.

The all lot price balance continued to edge up in the final quarter of 2009, with 17% more surveyors reporting rising rather than falling prices, up from 14% in the previous quarter; this was the highest since the first three months of the year.

Silver and jewellery remain the strongest sectors with 50% and 37% of surveyors reporting rising rather than falling prices in these categories respectively. These are traditionally seen as safe havens for investors, but their continuing strength can be attributed to the increased scrappage value of precious metals towards the end of the year.

Reversing four quarters of falling prices, the contemporary art market experienced a resurgence during the final three months of 2009. The balance of surveyors reporting rising rather than falling prices was 6%, the first positive reading since Q3 2008, and up from -34 the previous quarter.

In the oil and watercolour subsector, 5% more surveyors reported rising rather than falling prices with the top end of the market fairing particular well. For lots over £50,000, the top bracket, 17% more surveyors recorded rising rather than falling prices. In contrast the balance was only 9% for contemporary arts, indicating that traditional pieces remain more popular for large investors.

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House prices continue to rise albeit at a slower pace

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House prices are on the rise albeit from a level level and geography is important – not all areas are showing increases.

In December, 30% more Chartered Surveyors reported a rise than a fall in house prices down from 35% in November. A significant majority of surveyors are still recording price increases in London, the South East, the South West and East Anglia. However, more surveyors in the North and the West Midlands are seeing falls in house prices indicating that the recovery in the market is less entrenched in some parts of the country than others.

For the seventh consecutive month, more Chartered Surveyors are reporting that the number of new instructions is increasing rather than falling. 17% more Chartered Surveyors reported a rise than a fall in new instructions. Fresh demand for property is still outstripping new supply but the gap has narrowed. 20% more surveyors stated that enquiries from potential purchasers are rising rather than falling but enquiries rose at the slowest pace since January 2009.

Other demand indicators are also losing some momentum, although they remain in positive territory. The newly agreed sales balance slipped to 22 from 24 while the sales expectations net balance dropped to 6 from 20.

Transaction levels were little changed in December. The number of sales per surveying firm is still hovering around 19 for the fourth consecutive month while the closely watched sales to stock ratio – a measure of market slack and a lead indicator of future prices- fell back slightly.

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London office availability no longer rising

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The amount of office space available to tenants in London declined for the first time in two years as the London economy started to lead the country out of recession.

Demand for business property increased in the fourth quarter of 2009 with office space and industrial property proving particularly popular but demand for retail space continued to decline.

Fourteen percent more chartered surveyors reported a rise in tenant demand, up from 8% in the previous quarter. This is the second successive rise in tenant demand and the first time that there has been an upward trend since early 2007.