The Royal Institute of Chartered Surveyors UK Residential Survey for June paints a positive picture of demand – although RICS remains cautious despite ‘encouraging’ signs of stabilisation in the market.
The monthly sentiment survey of chartered surveyors operating in the residential sales market shows a new buyer enquiries measure of +3 – the first positive reading since December.
Sales agreed remained in a negative net balance, at -3%, but this was also a marked improvement on previous months and the -28% recorded in May. Near-term sales expectations improved, at +6% in June after coming in at -2% in May – a figure RICS says ‘hints at a very gentle recovery’.
Although new instructions to sell registered a net balance reading of +3%, down from 7% in May, +16% of respondents said the number of market appraisals conducted over the month is greater than during the comparable period of last year. ‘This would suggest there is still some positive impetus in the supply pipeline moving forward’, RICS said.
Nationally, the RICS picture of house prices continues to show aa flat to marginally negative trend’, with the net balance for June remaining at -7%. There also continues to be much regional variation in price activity with the South East, East Anglia and London showing a more pronounced decline in prices, and Northern Ireland, the North West, Scotland and the East Midlands experiencing growth.
Looking ahead, respondents said they expect this slightly negative trend at the UK-wide level to continue in the short term. However, when asked about the 12 month outlook, 24% of survey participants anticipated price increases in the coming year.
Tarrant Parsons, RICS head of market research and analysis, said of the report:
“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.”
