Housing market expected to be slow for three months before picking up pace
Prices in the UK property market have been stuttering ever since the start of this year, and this is a trend that is likely to continue into the summer, with the latest data suggesting that declines in prices will be commonplace for the next three months.
The latest monthly report from the Royal Institution of Chartered Surveyors (RICS) suggests that the number of enquiries from new buyers, as well as the instructions from those looking to sell their homes means that the market is seeing a decline in overall interest. This is likely to see activity drop, which in turn means that people are able to get homes for less, forcing prices down.
"The latest survey suggests that uncertainty related to the general election may have contributed to what appears to have been a disappointing level of transactions in the housing market over the spring," said Simon Rubinsohn, RICS chief economist.
"Perhaps the most ominous signal emanating from the data released today is that contributors still expect house prices to increase at a faster pace than wages over the medium term despite the difficulty many first time buyers are clearly having in taking their first steps onto the property ladder," he added.
Of those chartered surveyors surveyed, some 25 per cent more said said they have seen a decline in the number of instructions in the last month, which gives the sector the lowest reading in this regard since July last year.
On top of this, there was a rise in the number of surveyors who were seeing a decline in agreed sales, with May's report suggesting that eight per cent more have seen a fall than a climb in this metric in the last few months.
However, while the market does not look all that promising in the short-term, the good news is that it's not expected to be a long lasting downturn. Of those surveyed, some 54 per cent remain confident that the property market will perform well over the course of the next 12 months.
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09-June-17General Lettings News