Last month saw new sales instructions even out, with prices remaining stable on the whole.
The results of the August 2017 RICS UK Residential Market Survey indicate a varying picture in key statistics across the country. Whilst hesitancy remains prominent in London and the South East to a more modest degree, responses indicate that the perspective is more positive elsewhere.
Over the course of August, the headline price balance rose to 6%, up from the former 1%. Whilst this indicates that growth may be returning, the increase is in line with just a slight rise in prices nationally. Looking beyond this figure, the diversity across the UK grew.
Showing the lowest reading in 9 years, London’s price gauge continued to be negative, whilst the South East price indicator also weakened for the third consecutive month. These regions run parallel in terms of market view, with both being home to the greatest proportion of respondents who feel that the market is priced excessively.
The only other regions to display negative price indicators were East Anglia and the North of England. In general, the remaining regions all indicated stable price growth in terms of net balance, with the strongest rises occurring in the North West, Scotland, Northern Ireland and the South West. Prospectively, expectations for the headline price continue to be cautious in the short term, with the average reading being mainly subdued by London and the South East. In contrast, Northern Ireland and Scotland displayed the most amount of optimism in the short term growth. On a longer term basis, the only areas to show a negative forecast was London, whilst the net balance in other regions indicated a more positive outlook.
Where demand is concerned, the survey results show minimal diversion in enquiries from buyers in August. Parallel to this, sales agreed remained relatively unchanged at a -4% net balance. This measure, even on a more national basis, has not seen a rise since November last year.
When looked at on a regional level, the softening in sales volume mainly occurred in London, the South East, East Anglia and the North. At the other end of the spectrum, areas such as the South West, Wales and Northern Ireland displayed a more healthy growth in sales, with the overall outlook remaining relatively optimistic across the UK.
In terms of supply, the net balance of new sales instructions was recorded at -1%, having risen from
-11% in July. This performance indicator has seen a gradual rise over the last quarter, suggesting that the influx of new properties entering the market is steadying. The latest figure is also the most positive reading since February last year. It is important to note, however, agent stock levels have been recorded at an average of 43.2 – almost an all-time low.
Where new instructions are concerned, London has reported a rise during recent months, most notably in July and August. Since February, the average number of properties on agent’s books has grown from 29 to 36 in the city, whilst over the same period, other regions have seen a fall.
