Despite a modest price rise overall, the housing market picture across the UK remains increasingly mixed, according to surveyors. The Royal Institution of Chartered Surveyors said that the number of surveyors reporting a price rise in July was 6% in August, up from 1% in July. RICS said that while there was an uptick in […]
Despite a modest price rise overall, the housing market picture across the UK remains increasingly mixed, according to surveyors.
The Royal Institution of Chartered Surveyors said that the number of surveyors reporting a price rise in July was 6% in August, up from 1% in July.
RICS said that while there was an uptick in respondents reporting an increase in activity, this picture masked widespread regional disparities.
Sentiment was less positive in prime central London, the wider South East, alongside the North and East Anglia.
In central London 56% more respondents reported a fall in prices – the weakest result since 2008.
However, the latest figures point to solid price growth in many regions, including Northern Ireland, the North West, Scotland, and the South West.
Simon Rubinsohn, RICS Chief Economist, said: “The latest results continue to suggest that the greatest pressure on both prices and activity continues to be felt in prime central London market.
“Although there are some signs that the wider South East is also losing some momentum, anecdotal evidence suggests the impact is very location specific. Meanwhile the numbers for most other parts of the country point to a rather more resilient marketplace.”
Landlords are expected to pull out of the market in the coming year as a result of policy changes designed to curb the buy-to-let market.
RICS said that 61% of surveyors felt landlords would exit the market over the coming year due to changes in stamp duty and mortgage tax relief.
Paul Bagust, RICS global property standards director, said: “The number of landlords exiting the market due to recent policy changes is concerning, especially given house price rises.”
Respondents predict that over the next five years rental growth will outpace that of house prices, averaging 3%, per annum.
Over the next 12 months, prime central London remains the only area in which prices expectations are negative.
Buyer enquiries remained broadly flat in August – the ninth straight month this has happened.
Homeowners used to seeing growth of around 8% each year have seen this figure drop to around 5.1% since the EU referendum, according to the Office for National Statistics.
Other measures paint an even worse picture, with Halifax putting the annual growth rate at 2.6%, down from a peak of 10% in March 2016.
Brian Murphy, head of lending at Mortgage Advice Bureau, said: “The mixed picture that we’ve seen emerging over the last few months appears to be continuing, with London and the South East seeing prices coming off the boil – some may say correcting to a more reasonable level.
“Overall, house price growth would seem to be in line with market expectations.
“What’s interesting to note is that many surveyors believe that significant numbers of landlords will exit the market in the coming months.
“If this happens, it could be the change in dynamic required to get more home owners moving, although it’s possible to suggest that it may take some time for the effects of this to have a significant l impact on the market.”
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