Gap Narrows
The majority of surveyors are now reporting that the gap between asking and selling price is narrowing says RICS research published today. In contrast, last August results of the same survey revealed that the gap was widening.

Across the UK, houses are selling at an average of 11 percent below the asking price with sellers in some regions being forced to accept as much as 26 percent discount off their advertised price.

The north still seems to be the worst affected region where vendors are accepting offers, on average, at only 74 percent of asking prices. However, 63 percent of surveyors in that region did report that the gap between asking price and selling price was narrowing.

Results in the North West have improved slightly, although the region is still looking weak, with vendors accepting offers at 84 percent of asking price; this stood at 82 percent last August.

Consistent with the fact that the 'new buyer enquires' and 'price expectations' balance are strongest in London, vendors are now achieving sales at around 93 percent of asking price, with 55 percent of surveyors reporting that the gap had narrowed over the previous three months.

As in August 2008, Scotland appears to be the least affected region with vendors achieving sales at 97 percent of asking price with 75 percent of surveyors reporting that the gap between asking and selling prices has narrowed in the last three months.

www.investalist.co.uk

Landlords
OPPORTUNITIES are starting to emerge from the rubble of the collapsed housing market, but investors keen to buy property again are taking a more savvy approach than last time.

With minimal savings rates on offer from the banks and equities still volatile, more investors view a housing market perceived to have passed its lowest ebb as offering both a decent return on their money and a degree of certainty over the long term.

Letting agent DJ Alexander this week reported that interest from property investors has grown significantly over the last three months. It claimed investors are enjoying annual yields of up to 6.5 per cent on Edinburgh properties and that there had been a return to a more traditional approach, where yield rather than potential capital growth was the defining attraction of an investment.

Founder David Alexander said: "Tenanted and income- producing properties are really all that investment buyers will consider at the moment.

"The amateur buy-to-let landlord who entered the rental market for the first time with a new-build flat in an untested location has gone."

www.investalist.co.uk