There fore castings that UK residential buildings shall register an increase of 2 % during 2010 and the number of transactions shall also increase in proportion. There shall be adequate support of the properties available in the UK market meeting the demand for residential properties.
The Royal Institution of Chartered surveyors feel that the number of transaction shall jump from the present level of about 60000 to around 70000.
The supply of properties for sale shall be increasing during the beginning of 2010 year. There shall be struggle in meeting the demand present in the market for residential properties. This struggle is likely to trigger the prices further. Surveyors feel that there are not much houses for sale.
Effects due to Demand & Supply:
So as to reduce the gap between demands and supply the market shall respond by a big measure. There is already cautioning by the lending organizations about uncertainty of the economy scenario due to the influence of labor market not showing reciprocal encouragements.
The market shall face challenges the impact shall be that by the end of year there shall be just 1 to 2 percent increase in the prices.
Even in spite of there shall be normal market influence to reduce the gap between demands and supply. There shall be an imbalance in the beginning of the year marked by gains in prices.
All the more the reduction of gap between supply and demand will ultimately start its effect in a great manner on the market. The imbalance between supply and demand will continue into the early part of the new year resulting in some further house price gains. The cumulative effect of more properties available and the initiating of the exiting strategy as a result of massive support programs shall support the economic situation also.
The Christmas Sentiments in the Market:
As a consequence of Christmas season, the transactions numbers and volume of business shall witness the increase, which is the wish list of dealers through out the country. The category of first time buyers shall have difficulty in raising adequate funds in the absence of support from friends and relatives.
On the contrary comments from Bank of England, differs in its opinion that the price gain at present shall not be sustainable during the year 2010. The present strength of housing market is surprising.
It is expected that next year the housing activity shall be comparatively lower and the effect on the housing properties shall be minimal. At present there are more enquires than the sock of housing properties available.