The decline we have been seeing in new buyers purchasing homes showed signs of slowing down and stabilising in May. Coinciding with the decision to extend the UK’s withdrawal from the EU, which should now happen in October, the current housing market is showing slight signs of improvement.
The main key points to note, are that new buyer enquiries are steadier in May than the previous months of decline. Prices in London are beginning to bounce back, which gives a good indication to compare the rest of the country to. Sales, house prices and new instructions are still slightly negative, but less so than previously seen. It is expected that there will be a gradual improvement over the next few months.
House Prices and Sales
Despite seeing a ‘less negative’ trend in the housing market recently this does not necessarily mean that this will translate into an increase in sales any time soon. Sales for the next three months are looking stagnant, but if you look further ahead by 12 months then there is a slight increase in sales expected.
There is a lack of houses in stock in the UK, which has translated as a new low this month for stock available on the agents books. Even with new instructions coming in, there is little evidence that the supply of stock is going to increase significantly.
In terms of house prices, there is an indication that the rate of price decline is decelerating. With the South East of England showing the least price movement, and London showing improvements.
Looking at the rental market, the demand via tenants has increased slightly for the fifth month in a row. But, at the same time, landlord instructions have fallen. Which has been the main trend over the past three years. This imbalance has lead to an increase in rent prices seen across all regions of the country.
Simon Rubinsohn from the RICS said “Some comfort can be drawn from the results of the latest RICS survey as it suggests that the housing market in aggregate may be steading.
“However much of the anecdotal insight provided by respondents is still quite cautious, reflecting concerns about both the underlying political and economic climate.”
How does this compare with the Property Market back in February?
If you need a Chartered Building Surveyor contact Richard Benwell.