Negative trend in prime central London according to RICS

RICS UK Residential Market Survey report – August 2017 released today headlines ‘Growth at the headline level, but regional house price picture remains mixed.’

Although the headline level shows a return to growth, sentiment is less positive in prime central London and to a lesser extent the wider South East, alongside the North and East Anglia.

In the August RICS survey, 6% more respondents reported prices rising rather than falling at the headline level, the latest figures point to solid price growth in many parts, including Northern Ireland, the North West, Scotland, and the South West.

Negative trend in prime central London in particular  with 56% more respondents seeing a fall in prices, posting the weakest result since 2008.

Simon Rubinsohn, RICS Chief Economist said: “The latest results continue to suggest that the greatest pressure on both prices and activity continues to be felt in prime central London market. Although there are some signs that the wider South East is also losing some momentum, anecdotal evidence suggests the impact is very location specific. Meanwhile the numbers for most other parts of the country point to a rather more resilient marketplace.

“It is interesting that over the medium term, the conclusion of the latest survey is that rental growth is likely to outpace increases in house prices. Although the Build to Rent offer is now stepping up a gear, there clearly is some doubt as to whether it can do so at a fast-enough pace to address the shortfall which may result from the more hostile environment for Buy-to-Let investors.”

Read the RICS UK Residential Market Survey report – August 2017 in full click here.