The number of newly agreed sales has fallen, for the sixteenth successive month, says the RICS in its latest Residential Market Survey (June 2018), its UK housing market analysis.
New buyer enquiries remained flat in June and, says the RICS, indicating a disinterest in buying, possibly due to a lack of choice as homeowners stay put. However, new instructions have risen, with 43 per cent of surveyor respondents reporting an increase, but stocks remain close to historic lows at 43.
Simon Rubinsohn, RICS Chief Economist, pictured, said, “It is hard to see what is going to provide much impetus for activity in the housing market in the near term. Meanwhile the on-going challenges around lifting the delivery pipeline, reflected in last week’s disappointing data on housing starts, is captured in the suspicion in the survey that prices are likely to resume an upward course over the coming year.
“The challenge is also visible in the response of the private lettings market to change to the tax treatment on investment properties. While it is understandable that the government wanted to provide a lift for first time buyers, this may well come at the cost of higher rents as the appeal of buy to let diminishes.”