Housing market ‘downbeat’ at moment but set to pick up, says RICS
Surveying trade body says its poll of agents shows enquiries, sales and prices are all down, but there is some optimism for later this year.
The housing market remains ‘downbeat’ with buyer enquiries, instructions and agreed sales falling, according to RICS.
House prices are also dropping, but a more stable market may be coming, the RICS Residential Market Survey for last month shows.
A tighter mortgage market means the gloomy picture is set to continue in the near future, with changes in outlook expected to be within a year.
New buyer enquiries were down 29% in March, which barely changed from February.”
Buyer demand remains weaker across the UK, with virtually all regions and the four nations posting a negative reading in the latest returns, RICS says.
Agreed sales slipped by 31% in March, and the number of fresh listings coming onto the market falling fell slightly by 6%.
Alongside this, house prices continue to dip, with the most significant declines in prices in East Anglia, the South East, the West Midlands and London.
Price expectations are now broadly flat in London, while Northern Ireland, Scotland and Wales envisage a rise in house prices over the next year.
Rental squeeze
In the lettings market, the survey’s tenant demand growth indicator reached a five-month high, posting a net balance of +46%.
Respondents continue to expect rents being squeezed higher, with the net balance for near-term rent expectations rising to +59% from +45%.
For the year ahead, contributors are pencilling in roughly 4% growth in rental price.
The rental market remains hugely constrained by the lack of stock.”
Simon Rubinsohn, RICS chief economist, says: “The rental market remains hugely constrained by the lack of stock. Indeed, the consistency of the message from contributors to the survey about the shortfall of properties to rent and the impact this is having on rent levels is striking.
“The shifting tax and regulatory environment are highlighted as impacting the viability of many landlords operating in the sector.”
Read more about previous RICS reports.
