Housing activity stuttered in December, with a fall in the expected number of sales predicted over the coming months, according to surveyors. The Royal Institution of Chartered Surveyors said that 1% more chartered surveyors saw a fall rather than a rise in sales last month and sales growth over the next three months were also […]
Housing activity stuttered in December, with a fall in the expected number of sales predicted over the coming months, according to surveyors.
The Royal Institution of Chartered Surveyors said that 1% more chartered surveyors saw a fall rather than a rise in sales last month and sales growth over the next three months were also pared back.
RICS said that only 4% more respondents anticipate an increase in sales during the coming three months, down from 18% previously.
However, some parts of the UK reported a rise in sales over December, with Wales, the South West, and the North East all seeing an increase.
Despite housing activity falling in December, prices continue to rise, albeit at a slower pace.
The percentage of surveyors reporting a rise in house prices fell from 29% in November to 24% in December.
“Although this suggests prices are still rising firmly, the latest figure does end a run of four successive months of higher house price balances,” said RICS.
Central London was the only region to see a decline, with prices having now fallen for 10 consecutive months.
The North West reported the strongest price growth with 55% more respondents noting an increase in prices.
All parts of the UK are expected to see higher prices over the year, although expectations remain relatively subdued in Central London.
In the lettings market, rents are being squeezed higher due to demand consistently out pacing supply. This trend is expected to continue with surveyors expecting annual growth to average close to 5% over the next five years.
Demand in London fell for a fourth month in a row, with rents expected to come under downward pressure in the capital.
Simon Rubinsohn, RICS chief economist, said: “A familiar story relating to supply continues to drive both the sales and lettings markets impacting on activity, prices and rents. The eagerly awaited housing white paper should help to create a more positive framework for new build delivery but with the best will in the world, it is going to take time before the resulting uplift in the development pipeline begins to impact on the opportunities for either homebuyers or tenants.
“Meanwhile, the latest RICS survey provides further evidence that both price and rent pressures are continuing to spread from the more highly valued to more modestly valued parts of the market for good or ill.”
Richard Sexton, director of e.surv, said: “Although activity flattened last month, this is typical around the festive period as many buyers wait to restart activity in the New Year.
“However, even if demand has softened, the problem remains on the supply side. New instructions remain sluggish and with annual house prices rising at an unsustainable rate, too many prospective new buyers are being priced out of the market.
“A new year means new opportunities for change. As we await the government’s Housing White Paper, hopefully further initiative and funding will be applied to help secure home ownership for many hard-working earners.”
