News Archive:


13/06/2017 - Live by the beach... in London! 13 Jun 2017
08/06/2017 - Election causing buyers and sellers to "wait and see" 08 Jun 2017
06/06/2017 - More lenders target small-deposit buyers, just as house prices slide 06 Jun 2017
02/06/2017 - House prices show longest sustained fall since 2009 crash 02 Jun 2017
01/06/2017 - Apps for surveyors: 2017 edition 01 Jun 2017
22/05/2017 - Conservatives plan to bring back Home Information Packs 22 May 2017
15/05/2017 - Revealed, the least affordable places in Britain to buy a property: 15 May 2017
08/05/2017 - House price growth stagnates in the UK, latest index shows 08 May 2017
06/04/2017 - Dramatic scene after house collapses in affluent street in Kingston 05 Apr 2017
28/03/2017 - Borrowers urged to fix their mortgage fast as rising inflation could soon spell the end of super low interest rates 28 Mar 2017
22/03/2017 - House prices see 1.3% monthly surge 22 Mar 2017
09/03/2017 - UK property market growth continues to rise modestly apart from in London 09 Mar 2017
24/02/2017 - House prices go potty! 24 Feb 2017
09/02/2017 - How the Government's Housing White Paper plans will affect you 09 Feb 2017
08/02/2017 - How to flood proof your home: We visit 'Resilient House' with latest defences to help protect against expensive water damage 08 Feb 2017
30/01/2017 - Homeowners taking advantage of cheap remortgage deals 30 Jan 2017
25/01/2017 - Analysis: Stamp duty is killing the housing market and harming the economy 25 Jan 2017
11/01/2017 - Mapped: Which London neighbourhoods have seen the biggest house prices rise since the crash? 11 Jan 2017
09/01/2017 - January sees largest fall in BTL products since 2009 09 Jan 2017
04/01/2017 - 'Thousands' of Starter Homes to be built in 2017 04 Jan 2017

News.

08/06/2017 - Election causing buyers and sellers to "wait and see"

Enquiries from new buyers, new instructions from those wanting to sell, and agreed sales in the housing market, have once more declined in May, according to the latest RICS UK Residential Market Survey. In addition, price growth also lost momentum and is predicted to slow further over the next three months.

Survey in brief:

  • Demand slips and new instructions from sellers decline further in May.
  • Agreed sales continue to drop.
  • National price growth eases and expectations remain subdued.

Is politics impacting the market?

Although a fall in property coming on to the market is a recurring theme over the past two years, anecdotal evidence from respondents to the survey in May suggests this month’s drop may have been exacerbated by the General Election, as some adopt a "wait and see" approach. In May, 25% more respondents cited a decline in fresh listings (compared to those reporting a rise), producing the most negative reading since July 2016. Alongside this, new buyer enquiries fell at the national level, having remained stagnant over much of the past six months. As with new sellers, a large portion of contributors suspect the General Election is having an adverse impact on demand.

Current sales and looking ahead

At the same time, agreed sales continued to decline for a second month running as the national indicator saw 8% more respondents seeing a fall in agreed sales (compared to -9% previously). Going forward, near-term sales expectations imply little change over the coming three months, but beyond this over the next twelve months, respondents appear slightly more optimistic with a net balance of 26% anticipating an increase in activity.

Although lack of supply continues to support prices, the headline price growth indicator moved from +22% to +17% in May, the softest reading since August 2016, and prices continue to slip in central London.  Looking ahead, near-term price expectations have also slipped to -1% from +5% in April (the third straight report in which this indicator has softened). London continues to exhibit sentiment more negative in comparison to all other parts of the UK, although near-term expectations in all regions have slipped.

This trend is not expected to continue into the long term with national twelve month expectations remaining solid, at +54%. Further out, over the next five years, respondents envisage house price inflation averaging 3.5% per annum across the UK as a whole.

Lettings market

In the lettings market, tenant demand rose only marginally (on a non-seasonally-adjusted basis), while new landlord instructions were again broadly flat.  17% more respondents nationally expect rents to rise (rather than fall) over the coming three months and, in terms of twelve month expectations, contributors are pencilling in around 2% headline rental growth over the year ahead.

Comments

The view from RICS

The latest survey suggests that uncertainty related to the General Election may have contributed to what appears to have been a disappointing level of transactions in the housing market over the spring. Perhaps the most ominous signal emanating from the data released today is that contributors still expect house prices to incease at a faster pace than wages over the medium term despite the difficulty many first-time buyers are clearly having in taking their first steps onto the property ladder.

The increasingly tight second-hand market remains a cause for concern with the RICS series tracking new instructions to agents recording its fifteenth successive negative reading. It is hard to see this as anything other than a major obstacle to the efficient functioning of the housing market.

Source: www.rics.org 08/06/2017