Residential Prices Falling
Supply and demand was mixed across the residential property market in January and 49% more surveyors saw prices fall.
Scotland and Northern Ireland’s housing market outperformed the rest of the UK, with more buyer examination, stronger price growth and higher confidence in the outlook.
While nationally, the number of potential new buyer enquiries fell for the seventh consecutive month, Scotland saw the greatest buyer interest with several respondents suggesting the new Land and Buildings Transaction Tax (LBTT) will prompt more first time buyers to get on the property ladder.
Meanwhile, Northern Ireland’s housing market witnessed the strongest price momentum for the fifth consecutive month, with 47% more respondents reporting increases in prices.
However, the survey from the Royal Institution of Chartered Surveyors (RICS) shows. that the national results, which are based on England and Wales only, continue to signal a cooling market and price growth has all but levelled off with just 2% more surveyors expecting prices to increase over the next three months, its slowest pace since May 2013.
The survey shows that within England, London market conditions continue to deteriorate with prices, buyer enquiries and sales falling. Some 49% more respondents saw prices in the capital decline and the short-term confidence outlook is negative, despite the longer terms sales outlook being more upbeat.
In the lettings market 19% more respondents reported a further rise in tenant demand during the three months to January and while supply appears to be dipping once again, there is anecdotal evidence to suggest that some new build rental properties are coming to market and surveyors’ rental growth expectations now stand at 4.6% per annum over the course of the next five years.