Latest news with #SimonRubinsohn
Belfast Telegraph
5 days ago
- Business
- Belfast Telegraph
Optimism for NI housing market as sales and prices rise, survey finds
The latest monthly research by the Royal Institution of Chartered Surveyors (RICS) found optimism about prospects for the housing market among its members in Northern Ireland. The report of rising sales in July reversed two consecutive months of falling sales reported in May and June. A net balance of 5% of NI surveyors reported that sales rose throughout the month of July – a significant improvement from the previous two surveys. But at a net balance of 60%, much stronger numbers were optimistic on the outlook for sales, and expected sales to rise in the next three months. Surveyors also reported an increase in demand during July, with a net balance of 40% reporting an increase in new buyer enquiries. That was the second-highest balance seen across the UK after the north-west of England. Supply had also improved in July, with a net balance of 40% reporting new instructions to sell during the month, similar to levels seen in Scotland, the north-west and East Midlands. And respondents in Northern Ireland were reporting a rise in prices in strong numbers, with a net balance of 95% reporting increasing prices in the last few months. That trend is expected to continue, with surveyors anticipating that prices will go up in the next three months. Increased housing market activity is expected as a result of the Bank of England's decision last week to cut interest rates from 4.25% to 4%. Samuel Dickey, RICS Northern Ireland residential property spokesman, said: 'The first half of 2025 was relatively steady for NI's residential property market and it's encouraging to see this continuing as we progress into the second half of the year. "Whilst the most recent survey sees surveyors reporting a rise in supply coming to the market, we still do not have sufficient stock to meet the needs of the market. "It is hoped that the recent easing of interest rates will support new buyers in the coming months.' UK-wide, RICS reported that new home buyer enquiries had fallen back in July. A net balance of 6% of property professionals reported new buyer enquiries falling rather than rising in July, indicating a softening in demand compared with the previous month. Simon Rubinsohn, RICS chief economist, said the UK market may be feeling the impact of fears about the autumn Budget: '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.' Francis Grimley a mortgage and protection adviser with the Mortgage Shop in Belfast, told Belfast Telegraph last week: 'First-time buyer activity has been frenzied throughout 2025, and this latest rate drop is likely to intensify demand further,' he said.
Zawya
5 days ago
- Business
- Zawya
UK housing market loses momentum as tax worries surface, RICS says
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. "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% from -7%, 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. (Writing by William Schomberg; editing by David Milliken)
Reuters
5 days ago
- Business
- Reuters
UK housing market loses momentum as tax worries surface, RICS says
LONDON, Aug 14 (Reuters) - 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. "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% from -7%, 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.
Yahoo
08-05-2025
- Business
- Yahoo
UK house sales fall as stamp duty break hits demand
The UK housing market continued to lose momentum in April, with both buyer demand and completed sales falling as the stamp duty holiday came to an end. According to the latest residential market survey from the Royal Institution of Chartered Surveyors (RICS), a net balance of -33% of respondents reported a decline in new buyer enquiries, as higher transaction costs prompted many would-be homeowners to pause their plans. It is the third consecutive month demand has dropped. Sales volumes also dropped, with a net balance of -31% reporting a fall in agreed transactions — the weakest reading since mid-2023. 'Although geopolitical developments haven't helped the mood music in the residential market over the past month, the main reason for the dip in the key RICS sales activity metrics lies in the expiry of the stamp duty holiday at the end of March,' said Simon Rubinsohn, chief economist at RICS. Stamp duty discounts became less generous for some home buyers from 1 April. Stamp duty applies in England and Northern Ireland. Read more: How to plan for retirement and track your pension pot income Short-term expectations remain subdued, with a net balance of -15% expecting further declines in sales over the next three months. However, Rubinsohn suggested the medium-term outlook may be improving. 'Near term expectations indicators suggest the subdued trend will persist for the next few months at least, but looking beyond this, the results are more encouraging, reflecting in part the prospect of deeper interest rate cuts than previously anticipated,' he said. House prices held steady in April, slipping slightly into negative territory with a net balance of -3%, down from +2% the previous month. While caution persists in the near term — a net balance of -21% of respondents anticipate downward pressure over the next quarter — the longer-term outlook is more resilient. A net balance of +39% of survey participants expect prices to return to growth over the coming year. On the supply side, new instructions to sell remained essentially flat, with a net balance of +6% — unchanged from March. The flow of property appraisals, a key indicator of upcoming listings, rose only marginally, suggesting no significant change in supply conditions in the near term. Tom Bill, head of UK residential research at estate agent Knight Frank, said: 'Despite a predictable lull in April following the stamp duty cliff edge, demand in the UK housing market is relatively robust. Read more: Bank of England expected to cut interest rates 'The tariff turbulence means the Bank of England is expected to cut rates more quickly, which means more sub-4% mortgages have appeared although demand would falter if things got too bumpy.'
The Independent
08-05-2025
- Business
- The Independent
‘Home buyer inquiries and sales fall' as buyers adjust to stamp duty changes
Home buyer inquiries and sales fell in April, after a stamp duty holiday expired and as economic uncertainty continued to weigh on confidence, surveyors have reported. Stamp duty discounts became less generous for some home buyers from April 1. Stamp duty applies in England and Northern Ireland. The Royal Institution of Chartered Surveyors (Rics) said that new buyer interest declined for the third month in a row, with a net balance of 33% of property professionals reporting a fall in inquiries rather than an increase. This reflects growing caution from prospective buyers alongside affordability pressures and tight borrowing conditions, Rics said. A net balance of 31% of property professionals saw a fall in sales agreed rather than a rise. This was the weakest figure recorded since August 2023, pointing to a subdued spring market, the report said. More positively, a net balance of 17% of surveyors expect sales to rise over the year ahead. A net balance of 39% of professionals expect house prices to increase over the year ahead. Looking at the lettings market, tenant demand increased in the three months to April according to the report, while a decline in new landlord instructions remained evident, suggesting that rents will rise over the next few months. Rics chief economist Simon Rubinsohn said: 'Although geopolitical developments haven't helped the mood music in the residential market over the past month, the main reason for the dip in the key Rics sales activity metrics lies in the expiry of the stamp duty holiday at the end of March. 'Near-term expectations indicators suggest the subdued trend will persist for the next few months at least, but looking beyond this, the results are more encouraging reflecting in part the prospect of deeper interest rate cuts than previously anticipated. 'More problematic, however, is the negative feedback in the survey around supply in the rental market. With demand continuing to grow, there appears little relief in store for tenants in terms of the upward pressure on rents.' Tom Bill, head of UK residential research at Knight Frank, said: 'Despite a predictable lull in April following the stamp duty cliff edge, demand in the UK housing market is relatively robust. 'The tariff turbulence means the Bank of England is expected to cut rates more quickly, which means more sub-4% mortgages have appeared although demand would falter if things got too bumpy.' Jeremy Leaf, a north London estate agent, said: 'Over the past month or so, we have noticed considerably more tenant interest but a resistance to paying higher rents. 'However, lack of supply, particularly of one and two bedroom flats in more popular areas, often prompted by landlords deciding not to renew, is preventing a more marked downturn in values.'
