South East: RICS reports first increase in buyer enquiries since February
The latest RICS UK Residential Market Survey shows that home-buyer demand is beginning to pick up across the UK for the first time since February, with 8% more chartered surveyors reporting an increase in buyer enquiries.
In June, by contrast, a net balance of 34% of respondents reported a drop. The latest results in the South East, however, show a more stable trend rather than a solid recovery.
By contrast, the number of new instructions being received by agents has failed once more to pick-up in the region, with a net balance of 4% of respondents noting a further decrease. This drop in new properties coming to the market continues a pattern that extends back to the middle of 2014 with a brief exception around the turn of the year when some vendors saw opportunity linked to the April hike in stamp duty for investors. As a result, the average stock levels on estate agents’ books remains close to historic lows across the region.
The drop in housing supply alongside the increase in buyer demand is expected to push up regional prices somewhat in the near term and by rather more in the longer term. The net balance shows prices increased in September in the South East, with 26% more chartered surveyors reporting rise in prices (up from +9% in August).
Over the next three months, house prices are predicted to rise in the South East, with 20% more respondents expecting to see an increase, a considerable rise on the +7% in August.
Looking ahead, there is optimism regarding sales in the region, expectations for the next three months having improved to 24%, which is double the previous month (12%). In fact, respondents are predicting that sales will pick-up firmly in all areas of the UK over the coming 12 months.
Chris Gooch MRICS of Carter Jonas at Winchester, commented: “Market activity in September has been encouraging after a lack-lustre summer.”
Simon Rubinsohn, RICS chief economist, commented: “The market does now appear to be settling down following the significant headwinds encountered through the spring and summer. Buyers do appear to be returning, albeit relatively slowly, but the big issue that continues to be highlighted by respondents is the lack of fresh stock on the market. Although this is not a new story, it is a significant one having ramifications for both prices and the level of turnover. Other than in London, the price trend still seems on the up.”
