Latest news with #surveyors
The Independent
3 days ago
- Business
- The Independent
Why UK rental prices could rise by 25 per cent in three months
The flow of new rental properties coming to market has fallen at its fastest rate in five years, with 31 per cent of surveyors reporting a decline in landlord instructions. This sharp reduction in rental supply is anticipated to push rental prices up by 25 per cent over the next three months, despite tenant demand holding steady. The sales market experienced a downturn in July, marked by a fall in new home buyer inquiries and a net balance of 16 per cent of property professionals reporting decreased sales. House prices are showing a slight downward trend nationally, with 13 per cent of professionals noting falls, though prices continue to rise in Northern Ireland, Scotland, and the North West of England. While the average two-year fixed-rate mortgage has dropped below 5 per cent, the housing market remains "particularly price sensitive" amid ongoing economic uncertainties.
Yahoo
3 days ago
- Business
- Yahoo
Rents set to rise as UK rental listings fall sharply, survey finds
The supply of new rental properties in the UK has fallen at its fastest rate in five years, according to the Royal Institution of Chartered Surveyors (RICS). The latest survey reveals that 31% of surveyors saw a decline in new instructions from landlords, marking the weakest reading since April 2020. This sharp drop reflects a "firmly negative trend" in the number of rental properties coming onto the market. Shop Top Mortgage Rates A quicker path to financial freedom Personalized rates in minutes Your Path to Homeownership Despite this downturn in supply, tenant demand remained stable over the three months leading up to July. With fewer properties becoming available, rental prices are expected to continue rising. A net balance of 25% of survey participants anticipate higher rents in the coming months. In the sales market, new buyer inquiries also showed signs of weakening in July. A net balance of 6% of property professionals reported a decline in fresh inquiries from buyers, suggesting a softening in demand compared to June, when a net balance of 4% had observed an uptick. The report said that demand trends across different regions of the UK were increasingly varied. In particular, the East Anglia, South East, and South West regions of England reported relatively weaker demand. Meanwhile, the number of homes sold also dropped in July, with 16% of surveyors noting a decrease in transactions — worsening from a 4% drop in June. Read more: Best 0% purchase credit cards While overall sales figures appear subdued, property professionals are optimistic about a rebound within the next 12 months. A net balance of 8% of respondents expect a rise in sales over the year ahead. This is in contrast to the immediate outlook, where the market is expected to remain relatively flat. In terms of property prices, the survey noted a slight downward shift, with 13% of professionals reporting price reductions in July. This marked an increase from the 7% who had seen price drops in both May and June. However, regional differences were apparent. In Northern Ireland and Scotland, house prices continue to rise, while the North West of England is also seeing upward price movements. Conversely, East Anglia is experiencing a more pronounced decline in property prices than the national average. 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. Rubinsohn also pointed to the uncertainty surrounding the chancellor's autumn budget, which is causing additional concern. "Against this backdrop, respondents continue to report that the market remains particularly price sensitive at the present time," he added. Sarah Coles, Yahoo Finance UK columnist and head of personal finance at Hargreaves Lansdown, noted that the "green shoots of recovery" hoped for in June had wilted by July, as demand fell, fewer sales were agreed, and house prices experienced a slight decline. Read more: Savings rates drop as Bank of England cuts interest rates "The market always falls quiet during the summer holidays, but this is even more of a deathly hush than usual," she said. With tenant demand steady, Coles pointed out that more people are competing for fewer rental homes, in a sign that the era of runaway rents is far from over. "The era of runaway rents isn't over yet," she said, adding that renters, particularly those living alone, are facing severe financial strain. According to the Hargreaves Lansdown Savings and Resilience Barometer, the average renting household has just £62 left at the end of the month, with those living alone left with a mere £24. '[It's] incredibly tough on everyone,' Coles said. 'There's every sign that an awful lot of them have been pushed as far as it's possible for them to go." She stressed that with tight budgets, many renters struggle to save for a property deposit, which could lead to a cycle of ever-increasing rents. Coles suggested considering options like moving back home temporarily or seeking family support, as well as exploring government initiatives like the Lifetime ISA to help boost savings for a deposit. Tom Bill, head of UK residential research at Knight Frank, said: 'The housing market is hitting a series of hurdles this year. April's stamp duty cliff edge was the first and now buyers and sellers are increasingly unsettled by a re-run of last year's game of 'guess the autumn tax rise'. 'We had an interest rate cut this month, but it was priced in and the wider economic mood remains fragile. Supply still notably outstrips demand, which is also keeping a lid on prices.'Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
The Independent
3 days ago
- Business
- The Independent
Flow of fresh homes to rent ‘shrinks at fastest rate since 2020'
The flow of fresh rental properties coming to market has fallen at its fastest rate in five years, according to surveyors. A net balance of 31% of professionals saw new instructions from landlords falling rather than rising, which was the weakest reading since April 2020, the Royal Institution of Surveyors (Rics) said. Alongside the 'firmly negative trend' in landlords making their property available for rent, tenant demand held steady in the three months to July, the report added. With the lack of fresh rental home supply in the pipeline, rental prices are anticipated to continue to rise over the next three months by a net balance of 25% of survey participants, the report said. Looking at the sales market, new home buyer inquiries fell back in July, the report said. A net balance of 6% of property professionals reported new buyer inquiries falling rather than rising in July, indicating a softening in demand compared with the previous month. In June, a net balance of 4% of professionals had seen a rise in fresh inquiries from buyers. The report said that results across different areas appear to be increasingly variable, with relatively weaker demand trends reported in East Anglia, the South East and the South West of England. Sales fell in July, with a net balance of 16% of professionals seeing falls, deteriorating further from a balance of 4% who noted falling sales in June. Looking ahead, those surveyed expect to see little change in sales over the next few months, with a more positive outlook for 12 months ahead. A net balance of 8% of professionals expect to see a pick-up in sales in the year ahead. A net balance of 9% of survey participants saw an increase in the flow of new property listings coming onto the market in July. The latest survey also pointed to a small downward direction in house prices, with a balance of 13% of professionals seeing prices fall. This compared with a balance of 7% seeing price falls in both May and June. Going against the broader trend, prices continue to rise typically in Northern Ireland and Scotland, while professionals based in the North West of England are also seeing prices move higher, the report said. At the other end of the spectrum, prices are reportedly falling at a more significant rate than the national average across East Anglia, Rics added. 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.' Sarah Coles, head of personal finance, Hargreaves Lansdown said: 'The green shoots of recovery that agents were hopefully nurturing in June have dried up in July, with demand falling, fewer agreed sales, and a slight drop in house prices. The market always falls quiet during the summer holidays, but this is even more of a deathly hush than usual.' She added: 'We're firmly in a buyers' market right now, so there is a real chance to bag a bargain. For anyone who had been tempted to dip into their emergency savings to boost their budget, this is a chance to regroup.' Ms Coles said: 'With tenant demand remaining steady, yet again it means more people chasing fewer homes, and the era of runaway rents isn't over yet. 'The HL (Hargreaves Lansdown) savings and resilience barometer shows this is incredibly tough on everyone – so the average renting household has just £62 left at the end of the month. However, it's particularly horrible for renters living on their own – who end the month with a paltry £24. There's every sign that an awful lot of them have been pushed as far as it's possible for them to go. 'When money is so tight, it's incredibly difficult to cover your costs, let alone put anything aside for a property deposit. However, if you can't build anything at all, there's a risk you'll be locked into a cycle of ever-increasing rents. 'It means it's worth considering all your options. This can include anything from making major compromises on where you live to moving back home for a period. There are also options that don't require any of these sacrifices, such as asking family for help, or giving your deposit a boost from the Government through a Lifetime Isa.' Tom Bill, head of UK residential research at Knight Frank, said: 'The housing market is hitting a series of hurdles this year. April's stamp duty cliff edge was the first and now buyers and sellers are increasingly unsettled by a re-run of last year's game of 'guess the autumn tax rise'. 'We had an interest rate cut this month, but it was priced in and the wider economic mood remains fragile. Supply still notably outstrips demand, which is also keeping a lid on prices.' On Wednesday, financial information website Moneyfacts said that the average two-year fixed-rate mortgage on the market had dipped below 5% for the first time since before former prime minister Liz Truss's so-called mini-budget in September 2022. Moneyfacts said the average two-year fixed homeowner mortgage rate on Wednesday was 4.99%. This was down from 5.00% the previous working day. Jeremy Leaf, a north London estate agent, said: 'Agreed sales are mostly holding, supported by falling mortgage rates and a stable employment environment.' On the lettings sector, Mr Leaf said: 'We noticed that demand has dropped over the past month or so, especially for two-bed flats in older buildings, with more interest in modern, lower maintenance properties.'
The Independent
3 days ago
- Business
- The Independent
Less available places to rent could see prices rise ‘by at least 25%', report says
The lack of fresh rental home supply in the UK could see prices rise over the next three months by 25 per cent, a new report has said. It comes as the flow of fresh rental properties coming to market has fallen at its fastest rate in five years, according to surveyors. Thirty-one per cent of surveyors saw new instructions from landlords falling rather than rising, which was the weakest reading since April 2020, the Royal Institution of Surveyors (Rics) said. With less rental properties in the pipeline, prices are anticipated to continue to rise over the next three months by a net balance of 25 per cent, the report said. Despite the 'firmly negative trend' in landlords making their property available for rent, tenant demand held steady in the three months to July, the report added. Looking at the sales market, new home buyer inquiries fell back in July, the report said. A net balance of 6 per cent of property professionals reported new buyer inquiries falling rather than rising in July, indicating a softening in demand compared with the previous month. In June, a net balance of 4 per cent of professionals had seen a rise in fresh inquiries from buyers. The report said that results across different areas appear to be increasingly variable, with relatively weaker demand trends reported in East Anglia, the South East and the South West of England. Sales fell in July, with a net balance of 16 per cent of professionals seeing falls, deteriorating further from a balance of 4 per cent who noted falling sales in June. Looking ahead, those surveyed expect to see little change in sales over the next few months, with a more positive outlook for 12 months ahead. A net balance of 8 per cent of professionals expect to see a pick-up in sales in the year ahead. A net balance of 9 per cent of survey participants saw an increase in the flow of new property listings coming onto the market in July. The latest survey also pointed to a small downward direction in house prices, with a balance of 13 per cent of professionals seeing prices fall. This compared with a balance of 7 per cent seeing price falls in both May and June. Going against the broader trend, prices continue to rise typically in Northern Ireland and Scotland, while professionals based in the North West of England are also seeing prices move higher, the report said. At the other end of the spectrum, prices are reportedly falling at a more significant rate than the national average across East Anglia, Rics added. 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.' Sarah Coles, head of personal finance, Hargreaves Lansdown said: 'The green shoots of recovery that agents were hopefully nurturing in June have dried up in July, with demand falling, fewer agreed sales, and a slight drop in house prices. The market always falls quiet during the summer holidays, but this is even more of a deathly hush than usual.' She added: 'We're firmly in a buyers' market right now, so there is a real chance to bag a bargain. For anyone who had been tempted to dip into their emergency savings to boost their budget, this is a chance to regroup.' Ms Coles said: 'With tenant demand remaining steady, yet again it means more people chasing fewer homes, and the era of runaway rents isn't over yet. 'The HL (Hargreaves Lansdown) savings and resilience barometer shows this is incredibly tough on everyone – so the average renting household has just £62 left at the end of the month. However, it's particularly horrible for renters living on their own – who end the month with a paltry £24. There's every sign that an awful lot of them have been pushed as far as it's possible for them to go. 'When money is so tight, it's incredibly difficult to cover your costs, let alone put anything aside for a property deposit. However, if you can't build anything at all, there's a risk you'll be locked into a cycle of ever-increasing rents. 'It means it's worth considering all your options. This can include anything from making major compromises on where you live to moving back home for a period. There are also options that don't require any of these sacrifices, such as asking family for help, or giving your deposit a boost from the Government through a Lifetime Isa.' Tom Bill, head of UK residential research at Knight Frank, said: 'The housing market is hitting a series of hurdles this year. April's stamp duty cliff edge was the first and now buyers and sellers are increasingly unsettled by a re-run of last year's game of 'guess the autumn tax rise'. 'We had an interest rate cut this month, but it was priced in and the wider economic mood remains fragile. Supply still notably outstrips demand, which is also keeping a lid on prices.' On Wednesday, financial information website Moneyfacts said that the average two-year fixed-rate mortgage on the market had dipped below 5 per cent for the first time since before former prime minister Liz Truss's so-called mini-budget in September 2022. Moneyfacts said the average two-year fixed homeowner mortgage rate on Wednesday was 4.99 per cent. This was down from 5.00 per cent the previous working day. Jeremy Leaf, a north London estate agent, said: 'Agreed sales are mostly holding, supported by falling mortgage rates and a stable employment environment.' On the lettings sector, Mr Leaf said: 'We noticed that demand has dropped over the past month or so, especially for two-bed flats in older buildings, with more interest in modern, lower maintenance properties.'
Bloomberg
3 days ago
- Business
- Bloomberg
More Estate Agents Are Reporting Falling House Prices, RICS Says
Falling house prices are more widespread than at any time for a year as fears of tax rises and a bleaker economic outlook weigh on demand, a survey of UK estate agents found. The Royal Institution of Chartered Surveyors said its indicator tracking home values dropped six percentage points to minus 13 last month, the worst reading since July 2024. Agents expect home values to 'remain under a small degree of downward pressure' in the coming three months.
