Following eight months of steady progress the UK’s residential property market is picking up with prices and buyer demand rising, writes property developer Richard Carr.
According to the Royal Institution of Chartered Surveyors (RICS), 8% of surveyors reported an increase in buyer enquires in September 2016, which is a significant turnaround based on June when a net balance of 34% of respondents report a drop.
Despite this small positive there’s still the major use around the supply of new homes. As a result, the number of new instructions being received by agents fell once again meaning the average level of stock on estate agents books remains close to historic lows at just over 45 properties.
As has been the case over the past three years, the increasing buyer demand will continue to push up prices in the near term and much more in the longer term.
Before the end of the year, house prices nationally are predicted to rise further with 14% more respondents expecting to see an increase.
Interestingly, 59% of respondents felt that house prices were at a fair value, although 37% did feel that their local market is overpriced to some extent.
Richard Carr on the other hand is concerned by the prices and the impact they are having upon those wishing to get onto the property ladder.
“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.”
“Central London remains something of an outlier with contributors telling us this is the one part of the market where there may be further give on prices in the near term. Elsewhere the price trend still seems on the up.”