Market being hurt by low stock, political uncertainty and tax – RICS
Record low stock numbers, political uncertainty and the aftermath of tax changes are the obstacles hindering the housing market, according to the latest monthly RICS survey.
The strongest markets saw some prices remaining quite firm or on an upward trend in Northern Ireland, the West Midlands and the South West.
By way of contrast, the net balance of surveyors’ sentiment for central London remains negative with the pace of decline broadly matching that of the previous three months. Moreover, chartered surveyors are starting to report early signs of this flatter trend permeating outside the capital, as the price balance for the South East of England fell into negative territory, posting the weakest reading for this part of the country since 2011.
When asked about sales prices in comparison to properties’ asking prices, homes at the top end of the market (those listed at more than £1m) saw the greatest deviation in agreed prices, with 68 per cent of respondents reporting sales coming in below the asking price.
Whilst this is not uncommon in a flatter market, 33 per cent of respondents said the agreed price was up to five per cent below the asking price and just over a quarter reported between five per cent and 10 per cent under.
Alongside this, sales activity continues to lack momentum claims the RICS, with surveyors saying this is unlikely to change significantly in the next year.
The main element holding back the market continues to be a sustained deterioration in the flow of fresh listings, with new instructions dwindling for the 17th consecutive month. Consequently, average stock levels on estate agents’ books remain close to record lows, limiting choice for potential home buyers.
Kindly shared by EstateAgentTODAY