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‘little sign of relief in housing market’

Gloomy agents tell RICS there’s ‘little sign of relief in housing market’

The property sales market is set to continue to suffer, with little prospect of a pick-up in the near future, as reported by The Negotiator today. The latest RICS UK Residential Survey reflects a sales picture with falling prices and buyer hesitancy caused by mortgage upheaval this year.

The latest RICS UK Residential Survey paints a gloomy picture for the property sales market, indicating continued challenges with little relief in sight. The survey reveals a scenario of falling prices and buyer hesitancy, attributed to mortgage upheavals throughout the year.

Key findings include a decline in the national house price indicator from -55 in July to -68, the most negative reading since 2009. New buyer enquiries and sale instructions also experienced slight decreases. Newly agreed sales hit a low not seen since the Covid pandemic, dropping from -45 to -47.

Looking ahead, near-term sales expectations remain subdued, though slightly less negative than the previous month. On a twelve-month view, the trend in home sales is expected to flatten out, moving from -25% in July to -5% in August.

In the lettings market, conditions are more positive, with a net balance of +47 reporting a rise in tenant demand. However, new landlord instructions saw a slight decline.

“A sluggish housing market with little sign of any relief in prospect”

Simon Rubinsohn, RICS Chief Economist, notes the feedback points to a sluggish housing market with no sign of relief. There are also reports of landlords exiting the market.

Tom Bill, Head of Residential Research at Knight Frank, attributes the challenges to rising mortgage rates and the volatility of the past 12 months, leading to a decline in sentiment. While a cliff-edge moment for prices is not anticipated, a single-digit decline this year is likely to persist into the next.

For further details, refer to the original article on The Negotiator


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