Shortage of stock both in the new build and second-hand market says RICS
The latest Royal Institution of Chartered Surveyors (RICS) UK Residential Market Survey report September 2017 released today headlines ‘Activity drops amid price increases’.
The survey reveals the UK housing market continues to lack momentum in September, as demand from new buyers and sales fall again and the shift in interest rate expectations contributes to buyer caution in a slowing market.
The RICS reported that 20% of surveyors noticed a fall in demand during September, alongside this, 15% more respondents reported a fall in agreed sales rather than a rise which is the lowest since July 2016. National price balance still marginally positive, but London and the South East return weaker readings. Expectations point to a subdued near-term outlook for both prices and sales.
Rental expectations are somewhat subdued in the near term, with contributors anticipating only a marginal rise on a UK-wide basis according to RICS.
Simon Rubinsohn RICS Chief Economist commented: “It was always questionable to talk about the housing market as a single entity but the stark divergence in key readings from the latest RICS survey demonstrates in the clearest possible terms just how important the regional narrative is at the present time. In part, this is a reflection of affordability constraints hitting the higher priced segments of the market. It is perhaps also indicative of a shift in economic momentum in the face of the increasing possibility of the first hike in base rates in over ten years.
“That said, we are continuing to see evidence of shortage of stock both in the new build and second-hand market. And despite the announcements at the recent Conservative Party conference, it is hard to envisage this changing any time soon. Against such a backdrop, prices in general are likely to remain elevated and indeed, as the survey indicates, continues to rise over the medium term in most parts of the country.”
Read the RICS UK Residential Market Survey September 2017 in full click here.
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