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Business News Wales
2 days ago
- Business
- Business News Wales
Surveyors Cautious About Outlook for Housing Market as Supply Weakens
Surveyors in Wales remain cautious about the outlook for the housing market with demand subdued and supply weaker, according to the latest Royal Institution of Chartered Surveyors (RICS) Residential Market Survey. A net balance of 1% of surveyors in Wales reported that prices rose over the past three months. Although muted, this is higher than the average UK balance which sits at -13%. However, looking forward surveyors are cautious when it comes to pricing as a net balance of -18% expect prices to fall over the next three months. Although remaining in negative territory, this is up slightly from the -21% that was seen in the June report. On the demand side, a net balance of -30% of survey respondents in Wales reported that new buyer enquiries fell through July which is the lowest this balance has been since February of this year. And market supply levels appear to have dipped too. A net balance of -8% of surveyors in Wales report that new instructions to sell fell through July, which is the first time this balance has appeared in negative territory since October 2024. With demand and supply both subdued, sales also fell through July. A net balance of -55% of Welsh surveyors reported a fall in newly agreed sales. And similar to pricing, surveyors are hesitant on the outlook with a net balance of -13% of respondents in Wales expecting sales to fall over the next three months. Regarding the rental market, Welsh surveyors report that both tenant demand and landlord instructions fell flat through July. Subsequently, surveyors in Wales expect rents to be flat over the next three months. Commenting on the sales market, Anthony Filice, FRICS, Kelvin Francis Ltd said: 'Activity in viewings and sales is starting to slow with the holiday season, but viewers are serious, and sales are being agreed. Vendors need to be realistic in pricing, but confidence remains amongst buyers.' Discussing the lettings market, David James, FRICS of James Dean added: 'There is still a shortage of rental properties on the market.' Commenting on the UK picture, RICS Chief Economist, Simon Rubinsohn, said: 'The somewhat flatter tone to the feedback to the July RICS Residential Survey highlights ongoing challenges facing the housing market. Although interest rates were lowered at the latest Bank of England meeting, the split vote has raised doubts about both the timing and extent of further reductions. Meanwhile, uncertainty about the potential contents of the Chancellor's autumn Budget is also raising some concerns. Against this backdrop, respondents continue to report that the market remains particularly price sensitive at the present time.'
Business Times
2 days ago
- Business
- Business Times
UK housing market loses momentum as tax worries surface: RICS
[LONDON] A recovery in Britain's housing market lost steam at the fastest pace in a year last month as some buyers worried about possible tax increases in finance minister Rachel Reeves' next budget, the Royal Institution of Chartered Surveyors said on Thursday. Measures of buyer demand and agreed sales turned negative, the near-term sales outlook was flat and more surveyors reported house prices falling than rising, RICS said in a monthly report. RICS chief economist Simon Rubinsohn said the outlook was clouded by uncertainty over the Bank of England's next moves on interest rates after the Monetary Policy Committee only narrowly voted to cut borrowing costs last week. 'Meanwhile, uncertainty about the potential contents of the chancellor's autumn budget is also raising some concerns,' Rubinsohn said. Reeves is widely expected to raise taxes for a second year in a row to get the government back on track to meet her fiscal rules when she delivers her annual tax and spending plan in October or November. Britain's housing market has been volatile this year. The expiry in April of a tax break for the purchases of some homes caused a rush of demand before the deadline and a tailing-off after it, followed by a couple of stabler months. A NEWSLETTER FOR YOU Tuesday, 12 pm Property Insights Get an exclusive analysis of real estate and property news in Singapore and beyond. Sign Up Sign Up 'The somewhat flatter tone to the feedback to the July RICS Residential Survey highlights ongoing challenges facing the housing market,' Rubinsohn said. RICS' measure of new buyer enquiries turned negative having been positive in June for first time since December. Its balance of house prices fell back to -13 per cent from -7 per cent, the lowest since July 2024. The report struck a more downbeat tone than those published by mortgage lenders Halifax and Nationwide both of which reported a rise in house prices in July. In the rentals market, RICS' measure of landlords seeking tenants for their properties fell to its weakest since April 2020, which surveyors expected would lead to bigger rent increases. Surveyors linked the fall to concerns among landlords over legislation that is expected to give more rights to tenants. REUTERS
