A survey by the Royal Institution of Chartered Surveyors (RICS) of more than 600 surveyors at estate agent offices nationwide suggested a lack of choice in the market, uncertainty among would-be buyers and sellers because of June’s general election, and the continuing fallout of last year’s changes to stamp duty rates, were behind the stalled market.RICS’s findings echoed those in the Halifax index published earlier in May, which suggested the market was “stagnating”.Responses to the RICS survey showed that, across the country, new instructions remained negative for a 14th month, resulting in the average number of properties on estate agents’ books hovering close to record lows. Some 15 per cent more respondents saw new instructions drop in April, compared to the number reporting a rise, and the level of buyer inquiries remained largely unchanged for a fifth month.

A flat summer

Simon Rubinsohn, RICS chief economist, commented, “Although the picture clearly does vary across the country, the bulk of the feedback we are receiving points to a fairly flat summer for both activity and prices.“Lack of stock on the market remains a key challenge for the sector with recent and forthcoming tax changes having a material impact on transaction levels, particularly at higher price points. Uncertainty relating to the forthcoming general election is also highlighted by some respondents as a reason for inertia.“It is noticeable in the April report that the amount of new rental instructions coming through to agents is continuing to edge lower, which is not altogether surprising given the changing landscape for buy-to-let investors.“One consequence of this is that rents are expected to continue rising not just in the near term but also further out and at a faster pace than house prices.”

---

Related news:

• Affordability affecting UK housing market: Nationwide 
• House building surges to ten-year high in first quarter
• Sales of £1 million apartments surge to new high in London

---

A pick-up later in the year?

Nevertheless, a balance of 22 per cent of surveyors reported higher house prices in April – unchanged from the previous month – and although most expected to see the market remaining flat over the summer, a balance of 31 per cent anticipated a pick-up later in the year.“An acute shortage of stock remains a key factor underpinning prices for the time being,” the report said. “Average properties on estate agents books continue to hover close to record lows, while the headline indicator on new sales instructions remained negative for a 14th month in a row.”House price growth was patchy across the country. In central London, the price indicator remained in negative territory for the 13th month in a row and previously substantial price growth eased noticeably in East Anglia.Meanwhile, in NW England, a balance of 67 per cent of surveyors reported higher prices in April – a regional trend that has seen prices progress steadily upwards for the past seven months.For related news and features, visit our Residential Property section.Access hundreds of global services and suppliers in our Online Directory  Get access to our free Global Mobility Toolkit

©2024 Re:locate magazine, published by Profile Locations, Spray Hill, Hastings Road, Lamberhurst, Kent TN3 8JB. All rights reserved. This publication (or any part thereof) may not be reproduced in any form without the prior written permission of Profile Locations. Profile Locations accepts no liability for the accuracy of the contents or any opinions expressed herein.