Homeowners stay put amid economy fears

Homeowners are delaying selling their house due to the economic climate as they wait for uncertainty to pass, those seeking the best mortgage rates were told.

The Royal Institution of Chartered Surveyors has reported a fall in new sale instructions of five per cent in September, with newly agreed sales also falling for the first time since January.

"Falling supply of fresh stock is indicative of general fears overhanging the economy, with many potential sellers preferring to stay put for now," said Michael Newey, a spokesman for Rics.

"As a result, the UK housing market remains pretty flat, with activity level generally subdued."

Around a quarter more surveyors reported a fall in prices last month than a rise, suggesting that house prices are remaining reasonably static, he added.

Ben Wilkie, editor at What Mortgage?, recently suggested that those looking for the best mortgage rates should consider fixed rate deals.

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2011-10-11 14:16:15 © Moneyextra.com