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Home buyer inquiries increase overall for first time this year
Home buyer inquiries increase overall for first time this year

South Wales Guardian

time5 days ago

  • Business
  • South Wales Guardian

Home buyer inquiries increase overall for first time this year

The Royal Institution of Chartered Surveyors (Rics), which released the report, said the figures point to a period of stabilisation rather than a strong recovery. Its report for the month of June found that a net balance of 3% of property professionals saw new buyer inquiries rise rather than fall. This was the first time since December 2024 that buyer demand has moved out of negative territory, the report said. It is also a noticeable improvement compared with May, when a balance of 22% of professionals reported a fall in new buyer inquiries, the report said. Despite the positive trend, surveyors expect sales momentum to remain subdued in the near-term, with a broadly flat outlook for sales volumes over the next 12 months. New instructions to sell have seen a slight decline, with a net balance of 3% of professionals seeing a rise in June, down from 7% in May. While this signals a slowdown in the flow of new listings, 16% of professionals reported an increase in market appraisals compared to the same period last year, indicating that supply levels remain relatively healthy. House prices continued to follow a flat or slightly negative trend in June, with a net balance of 7% of professionals seeing price falls rather than increases. The South East, East Anglia and London have seen a more pronounced decline in prices, while Northern Ireland, the North West, Scotland, and the East Midlands experienced clear growth, Rics said. Looking ahead, professionals expect the slightly negative trend at the UK-wide level to continue in the short-term. But when asked about the 12-month outlook, 24% of survey participants expect to see house price increases. Stamp duty changes from April caused some sales to be bunched up earlier in the year as buyers rushed to beat the deadline. Stamp duty applies in England and Northern Ireland. In the lettings market, tenant demand remained largely flat, with a net balance of 2% of professionals seeing a fall rather than an increase. Landlord instructions continued to decline, with a net balance of 24% of professionals seeing a fall. Tarrant Parsons, Rics head of market research and analysis, said: 'The UK residential market appears to be entering a more settled phase, with demand showing signs of stabilising following a period of volatility. 'The earlier distortion caused by transactions being brought forward ahead of the stamp duty changes now appears to have largely dissipated, allowing underlying trends to re-emerge. 'Encouragingly, near-term sales expectations have begun to edge higher, pointing to a modest shift in sentiment. That said, confidence in the market remains somewhat delicate, with economic uncertainty at both the domestic and global level still seen as a potential headwind.' Tom Bill, head of UK residential research at Knight Frank said: 'Demand is recovering after the March stamp duty deadline meant transactions were pulled forward into the first quarter of the year. 'However, as buyers return, they have a lot of stock to choose from, which is putting downwards pressure on prices. Rate cut expectations have grown over the last six weeks due to weak UK economic data, which should support demand over the second half of the year and produce modest single-digit price growth in 2025. A re-run of last year's game of 'guess the tax rise' ahead of the Budget is the biggest risk for sentiment.' Sarah Coles, head of personal finance at Hargreaves Lansdown said: 'The number of renters looking for a home has remained stable, but landlords continue to pack up and leave the business, so there's still real competition for properties, rents continue to rise and they're expected to keep climbing. 'This is the last thing tenants want to hear, because their finances are already so stretched. The HL (Hargreaves Lansdown) savings and resilience barometer shows on average they only have enough savings to cover two-and-a-half months of essentials – falling short of the amount they need to withstand any nasty surprises. 'Meanwhile, those with a mortgage have enough for more than six months on average, so they have somewhere to turn when times are tough.'

UK housing market steadies after tax hike downturn, RICS says
UK housing market steadies after tax hike downturn, RICS says

Reuters

time5 days ago

  • Business
  • Reuters

UK housing market steadies after tax hike downturn, RICS says

MANCHESTER, England, July 10 (Reuters) - A downturn in Britain's housing market that followed a tax hike on property transactions in April eased off in June, according to chartered surveyors who expect a broadly flat picture in the months ahead. The Royal Institution of Chartered Surveyors said on Thursday its measure of new buyer enquiries turned positive for first time since December and agreed sales also improved. But the change suggested a stable market rather than an upturn. A balance of house prices was steady at -7%, meaning more surveyors reporting prices fell than rose, with London and the south east of England among the regions with the biggest drops. The survey chimed with other signs of a subdued property market after buyers rushed earlier in the year to beat the March 31 expiry of a tax break for some home purchases. Earlier this week, mortgage lender Halifax said house prices were flat last month. An expected further drop in interest rates later this year is likely to help the market, analysts have said. "The UK residential market appears to be entering a more settled phase, with demand showing signs of stabilising following a period of volatility," said Tarrant Parsons, RICS head of market research and analysis. "The earlier distortion caused by transactions being brought forward ahead of the Stamp Duty changes now appears to have largely dissipated, allowing underlying trends to re-emerge." Parsons pointed to a modest increase in expectations for sales in the near term but he said economic uncertainty - at home and globally - could hit activity.

Housebuyer demand stabilises after April slump
Housebuyer demand stabilises after April slump

Times

time5 days ago

  • Business
  • Times

Housebuyer demand stabilises after April slump

Housebuyer demand has turned positive for the first time in six months as the market starts to recover from a slowdown in sales after stamp duty changes in April. The Royal Institution of Chartered Surveyors reported that demand from purchasers was positive in June as the market stabilised after tax changes for first-time buyers. The institution's survey of people working in the residential market recorded a net balance of plus 3 last month, its first shift into positive territory since December 2024. It said the results showed a 'noticeable improvement' from minus 22 recorded in May, but warned that the latest data did not signify a full recovery. Members were reporting a 'stabilisation, rather than a genuine upturn' in demand. The government introduced changes to stamp duty at the start of April that added £11,250 to the cost of moving for some first-time buyers. Tarrant Parsons, head of market research and analysis at Rics, said: 'The UK residential market appears to be entering a more settled phase, with demand showing signs of stabilising following a period of volatility. The earlier distortion caused by transactions being brought forward ahead of the stamp duty changes now appears to have largely dissipated, allowing underlying trends to re-emerge. • David Smith: Real-life experiment proves stamp duty changes create uncertainty 'Encouragingly, near-term sales expectations have begun to edge higher, pointing to a modest shift in sentiment. That said, confidence in the market remains somewhat delicate, with economic uncertainty at both the domestic and global level still seen as a potential headwind.' House prices fell by more than expected in May as stamp duty costs increased and economists warned about the subdued economic backdrop. The average house price fell by 0.4 per cent in May to £296,648, according to Halifax, the mortgage lender. Economists had expected it would fall by 0.1 per cent. Prices started to rise again in June as the market recovered, with data from Nationwide, Britain's second-largest mortgage lender, showing a 0.5 per cent increase month-on-month to £273,427. Rics's report highlighted comments from individual members in estate agencies and surveyors up and down the country. Paul McSkimmings of Edward Watson Associates, a firm of surveyors based in the Northeast, said: 'My diary is full for the next five weeks, which is unprecedented.' James Watts of Robert Watts estate agents in Cleckheaton, West Yorkshire, said: 'The level of instruction and sales is very consistent but higher-value houses are struggling more, with fewer buyers. 'The main issue we are facing is the length of time that sales are taking to complete as most solicitors appear vastly under-staffed, which is causing pressure to mount on chains.' • Why the golden age of property investing is over Sean Steer of Brian Gale Surveyors, in Reigate, Surrey, said: 'We had our busiest month ever in June, which followed a very active first half of the year. Prices are being adjusted down. Inheritance money is being used for deposits to avoid taxation.' Chris Pearson of Baker Pearson, an agency covering Weymouth and Portland, said: 'Buyers are not rushing to make offers, happy to wait, definitely a buyers' market. [We have a] steady stream of properties coming to the market.' William Delaney, of Coopers of London, said: 'There is very little activity at the upper end of the market. It feels like the summer holiday lull has arrived already. Meanwhile, the worsening economic outlook only serves to exacerbate negative sentiment.'

UK homebuyer demand rebounds to a six-month high, index shows
UK homebuyer demand rebounds to a six-month high, index shows

Business Times

time5 days ago

  • Business
  • Business Times

UK homebuyer demand rebounds to a six-month high, index shows

[LONDON] A closely watched gauge of demand from potential British homeowners climbed to its highest level in six months, a signal that the real estate market is starting to stabilising from a tax-increase induced slowdown that's weighed on house prices. The Royal Institution of Chartered Surveyors (RICS) said its index tracking new buyer inquiries rose to +3 in June, indicating the number of estate agents seeing higher demand outnumbered those reporting a drop, figures released on Thursday (Jul 10) showed. It was the first positive reading since December and a sharp jump from -22 in May. Improving demand indicates the property market is steadying from the impact of the increase to the stamp-duty tax, which fuelled a spurt of buying before it kicked in and a steep slowdown afterwards. Even so, the pace of sales remains relatively subdued, in part due to a slowing economy and anxiety about the outlook. 'The earlier distortion caused by transactions being brought forward ahead of the Stamp Duty changes now appears to have largely dissipated, allowing underlying trends to re-emerge,' said Tarrant Parsons, head of market research and analysis at RICS. The RICS house-price indicator was largely unchanged at -7 in June, bucking analyst expectations that it would continue to decline. Other recent reports have sent relatively mixed signals, with Nationwide reporting a drop in prices while Halifax indicated they were little changed. But property agents forecast aggregate prices will continue to trend downwards in the near-term before improving over the next year, according to RICS. 'Encouragingly, near-term sales expectations have begun to edge higher, pointing to a modest shift in sentiment,' Parsons said. 'That said, confidence in the market remains somewhat delicate.' BLOOMBERG

UK housing market steadies after tax hike downturn
UK housing market steadies after tax hike downturn

New Straits Times

time5 days ago

  • Business
  • New Straits Times

UK housing market steadies after tax hike downturn

MANCHESTER: A downturn in Britain's housing market that followed a tax hike on property transactions in April eased off in June, according to chartered surveyors who expect a broadly flat picture in the months ahead. The Royal Institution of Chartered Surveyors said on Thursday its measure of new buyer enquiries turned positive for first time since December and agreed sales also improved. But the change suggested a stable market rather than an upturn. A balance of house prices was steady at -7 per cent, meaning more surveyors reporting prices fell than rose, with London and the south east of England among the regions with the biggest drops. The survey chimed with other signs of a subdued property market after buyers rushed earlier in the year to beat the March 31 expiry of a tax break for some home purchases. Earlier this week, mortgage lender Halifax said house prices were flat last month. An expected further drop in interest rates later this year is likely to help the market, analysts have said. "The UK residential market appears to be entering a more settled phase, with demand showing signs of stabilising following a period of volatility," said Tarrant Parsons, RICS head of market research and analysis. "The earlier distortion caused by transactions being brought forward ahead of the Stamp Duty changes now appears to have largely dissipated, allowing underlying trends to re-emerge." Parsons pointed to a modest increase in expectations for sales in the near term but he said economic uncertainty - at home and globally - could hit activity. (

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