13 Apr Property Market Update March/April
The UK housing market continues to lack drive, with new buyer enquiries and agreed sales sluggish throughout March. There was also a further drop in the number of properties being brought to market, and as a result, respondents to the latest RICS market survey have reduced predictions for sales growth for the rest of 2017.
Diminishing interest from prospective buyers
It was reported that New buyer enquiries within the UK remained level for a third consecutive month, and although the picture remains mixed across much of the UK, areas with deteriorating buyer interest outweigh those with increased demand. Strongest growth in new buyer enquiries was seen in Northern Ireland and the South West and, on a positive note for London, buyer interest has been increasing reasonably over the last four months.
New instructions to sell decreased significantly with 13% more respondents seeing a fall in new listing rather than a rise over the month of March. The volume of properties for sale on estate agent’s books has reportedly decreased to a new record low with branches (on average) now holding only 43 unsold properties.
Impact on sales
As a result of fewer properties coming to market, the impact on sales activity with transaction volumes failing to rise across the UK in each of the last four surveys. Only 3% more respondents saw a fall in agreed sales rather than a rise in March, however, sales did rise considerably in Wales, Scotland and Northern Ireland. Going forward, the national near-term sales outlook also appears somewhat subdued (+16% to +12% in March).
The continued shortly of supply in the market continues to strengthen sale prices, with 22% respondents seeing a rise over the past month across the UK, though, the difference between central London and the rest of the UK continues to expand.
London and further ahead
Prices in central London increasingly worsened and at -49%, the net balance is the weakest recorded since 2009. Yet 14% more respondents from London anticipate prices will be greater in a year’s time.
Looking Further ahead, sales prospects over the next year were abridged with 24% more respondents predicting an increase. Furthermore, hopes and expectations for the coming year sales growth, were reduced in eight of the twelve UK regions/countries covered.
Future Projections – Rental Market
Looking at the lettings market, tenant demand continued to rise as 11% more respondents noted an increase on a non-seasonally adjusted basis. New landlord instructions also remain in negative territory for a sixth straight month, and the imbalance between supply and demand continues to drive rents upwards. Contributors foresee further growth in rents in virtually all areas over the next year with the exception of the capital, where rents are predicted to continue to decline over the near twelve months.
If you would like more information on the property market, the best time to sell or need a Home Report carried out, call us on 0131 608 0175 or email us at firstname.lastname@example.org. Our surveyors are locally trained and have great knowledge of the Scottish Property Market. They are all Chartered Surveyors and are regulated by the RICS.