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LATEST: New instructions continuing to dwindle, report RICS agents

Organisation's monthly estate agency survey reveals dips in both supply and sales following the Stamp Duty holiday cut-off.

Nigel Lewis

Estate agents saw a further dip in the supply and sales of homes last month, the latest RICS residential index reveals.

The organisation, which spent much of this Autumn battling a financial scandal, says agents reported a net balance of -9% reporting a reduction in the number of homes sold.

Net balance is the number reporting fewer sales subtracted from those reporting an increased volume of property sales.

And -20% reported a fall in the number of properties being listed for sale, although demand remains strong with a +10% net balance reporting a rise in new enquiries.

This is not only impacting on sales activity but is a significant factor behind current house price rises.

In October, a net balance of +70% of respondents cited a rise in house prices, with the trend expected to continue over the next three months (net balance of +25%) and the year ahead (net balance of +69%).

Simon Rubinsohn (pictured, main image), RICS Chief Economist, commented: “Although the mood music around interest rates does appear to be shifting, for now the stronger influence on the housing market is the ongoing imbalance between demand and supply. The inventory on agents’ books appears to have slipped back towards historic lows and this seems to be underpinning both the current price trend and expectations for the next year.

Jeremy Leaf (pictured) north London estate agent and a former RICS residential chairman, says: “The monthly RICS housing survey is invariably a reliable indicator of market trends.

“This latest report is no exception and confirms what we are seeing on the ground – more resilience than expected after so many brought forward purchases in the summer taking advantage of the Stamp Duty holiday in particular.”

November 11, 2021

One comment

  1. In 1988 there were 2M completions, an uptick of 1M. Why the Chancellor played around with MIRAS creating a rush to buy. From late 1988 for three years the market languished, prices went backwards.

    And only those ‘needing to sell’ did so. 2021, uptick in completions to 1.5M from usual 1.1M to 1.2M, why Chancellor played around with SDLT (and yes worldwide property prices increased so impetus here also) result, market possibly now reapting itself.

    Low amount of inventory equals not many people moving, as in advance of any more – vendors list. No listings, means low market activity.

    Also of course in 1988 onwards we saw interest rates climb, reflecting a likely event from the seven wise people at the bank of England who meet again next month to decide on the BoE base rate policy.

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