The housing market lacks impetus and has become “stagnant”, with the number of properties on estate agents’ books hitting record lows.
The Royal Institution of Chartered Surveyors said that the number of homes left unsold by estate agents in March was 43 on average – the lowest since records began in 1978.
A net balance of 13% of surveyors saw a fall in fresh listings rather than a rise over the month.
RICS said the lack of supply continues to drive prices up, with 22% more respondents seeing a rise over the last month. However, the difference between central London and the rest of the UK continues to widen.
This has hit sales activity, with transaction volumes failing to rise across the UK in the last four surveys. RICS said 3% more surveyors saw a fall in agreed sales rather than a rise in March.
New buyer enquiries and sales remain flat. As a result respondents have reduced predictions for sales growth in the year ahead.
Despite lower activity, there was strong interest from buyers in Northern Ireland and the South West.
Simon Rubinsohn, RICS chief economist, said: “The latest results for our survey show little change in the underlying picture surrounding both sales and markets. High-end sale properties in central London remain under pressure, while the wider residential market continues to be underpinned by a lack of stock. This includes rents, which away from the capital are generally moving higher as demand outstrips supply.
“For the time being it is hard to see any major impetus for change in the market, something also being reflected in the flat trend in transaction levels.”
According to the latest Halifax House Price Index, annual house price growth rose 3.8% in March, down from 5.1% in February.
Meanwhile, Nationwide reported that house prices fell 0.3% month-on-month in March – the first monthly dip since June 2015.
Richard Sexton, director at e.surv, said: “It’s frustrating to see that the market dipped slightly last month. Transactions have remained flat for a while now, in part due to a lack of affordable housing for first-time buyers, which has led many people to continue renting or move back in with their parents in order to save for a deposit.
“The issue of affordability continues to plague the sector, and the wider economic uncertainty we have experienced recently has only added to this, causing more buyers to adopt a more cautious approach and hold off making big decisions until certainty returns.”
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