RICS has reported a ten-point decline in the number of homes coming on to the market as the property industry continues to struggle with a lack of stock
It says member agents reported a net balance of -34% during June compared to a -24% balance during May.
Net balance is the percentage of agents reporting an increase minus the percentage reporting a decrease.
The RICS figures also explain the extraordinary leaps in house prices seen in recent months – while supply showed a -34% net balance, agents reported a +14% net balance in demand, down from +43% in May.
This easing off in demand is happening across all regions of the UK, coinciding with the Stamp Duty holiday beginning to taper off, says RICS.
Looking ahead, a net balance of +56% of those who took part in the survey anticipated that house prices will continue to increase over the next twelve months at the national level.
Simon Rubinsohn (pictured, above), RICS Chief Economist, says: “Respondents to the latest RICS survey are pretty unanimous in once again highlighting the challenge around supply whether in the sales or rental markets.
“Reflecting this, the feedback is consistent with further increases in both prices and rents over the coming year.
“While the role the credit channel and the extended period of ultra-low interest rates can’t be ignored, it is critical the government is able to create the conditions to support higher levels of new-build development to address the worsening affordability challenge.”
Jeremy Leaf (pictured), north London estate agent and a former RICS residential chairman, says: ’The market paused in June as many buyers and sellers realised they just would not be able to take advantage of the stamp duty concession before it tapered off.
“The frenzy of April and May was replaced by an opportunity for many to try to take advantage of the increased balance in supply and demand, and give themselves a better chance of moving.
“Unfortunately, supply is still not increasing fast enough, despite the faster vaccination rollout. Nevertheless, we don’t expect a significant correction in prices, more of a softening at least for the next few months as confidence in the economy seems to be more of a priority than worries over the ending of the furlough scheme.”