January's cold snap 'seen to affect housing market'

Posted: 09 Feb 2010 09:32:33 GMT

The plummeting temperatures that were experienced in the UK during January have had a negative effect on the housing market, it has been revealed.

New statistics from the Royal Institute of Chartered Surveyors (Rics) revealed that during the big freeze potential homebuyer enquiries fell for the first time in 14 months, while newly-agreed sales similarly dropped for the first time in ten months.

"The cold snap in January clearly has a huge impact upon both supply and demand in the housing market with activity coming to a halt amidst the seasonal chaos," comments Ian Perry, spokesman for the body.

But it is not all gloomy reading for the property market - Mr Perry goes on to add that activity in the housing sector is expected to pick up again in the coming months due to the onset of a "spring bounce".

Despite the big freeze, house prices in the UK still continued to rise throughout January - recent figures from the Nationwide House Price Index revealed that property values rose by 1.2 per cent in the first month of the year, which equated to an 8.6 per cent year-on-year rise.

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