The UK housing market is going through a period of uncertainty at the moment with the latest RICS Residential Market Survey showing that house price inflation has dropped again. There is a general trend of both housing sales activity and new buyer enquiries decreasing.
The Survey showed that only 7% of surveyors recorded seeing an increase in house prices, which is the lowest recorded since July 2016. The previous month showed that 17% of surveyors saw a rise in house prices. This however doesn’t mean that the whole country is following the same pattern.
Some parts of the country showed a similar pattern, however changes in Stamp Duty are contributing to the numbers seen in London. Central London has shown a decline whereas those in the South East and East Anglia are showing a flatter trend. Some areas however are reporting a rise in housing prices such as Northern Ireland, Wales and the North West.
Our housing stock is also presenting an ongoing supply shortage, which analysts are predicting will continue over the coming months. When asked why we are facing this period in our housing market activity 44% of people blamed domestic political uncertainty, and 27% listed Brexit activity directly accountable.
If you look at the overall activity and levels of completed transactions, then 5% more respondents than previous, reported seeing a fall in sales numbers. This shows that consecutive periods of decreasing sales reflects a lack of stock on the housing market and a more cautious attitude from perspective buyers.
Newly agreed sales for the next twelve months are still predicted to show an increase in activity, however this increase will be at its lowest level since the aftermath of the UK referendum.
Looking at the activity of new instructions it has been shown that 19% more respondents saw a fall in properties coming on to our housing market. This fall in properties available on the market has been the same for the past sixteen months, all backing up the reasons for the new low in housing stock levels.
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