Andrew Scott Robertson, Chartered Surveyors & Estate Agents, Wimbledon

Every month the Royal Institution of Chartered Surveyors (RICS) releases its UK Residential Market Survey, providing valuable insights into the current state of the housing market nationwide.

This blog post is bought to you by our Chairman & Managing Director, John King, FRICS, who offers valuable insights from his experience here at andrew scott robertson in South West London  He actively contributes his comments to the monthly survey for the London region.

KEY OUTTAKES FROM THE FULL RICS RESIDENTIAL MARKET SURVEY FOLLOWING END OF FEBRUARY RESULTS 2024

Residential Sales Market Insights

House prices are they going up or down?

The number of residential transactions has substantially increased since the start of the year although no signs of any price increases yet. Indications are that values have stabilised particularly noticeable in the outer suburbs of London. There remains cautious optimism. Falling mortgage rates and a realignment of buyer-seller expectations has contributed to increased market activity.

New instructions

Some vendors seeking to sell have been cautious in not exposing their properties to the market too soon. The process from thinking to sell and placing their property onto the market is a time consuming emotional wrench for most would be sellers. It’s a hand holding exercise for most of us agents when dealing with clients yet to make up their minds.

There’s been a noticeable surge in the number of appraisals giving more confidence to vendors in knowing that buyer registrations remain higher than this period last year. As a rule, spring instructions most often lead to more offers.

New buyer enquiries

However, despite this increased activity, there hasn’t been a corresponding rise in property values. New listings and buyer enquiries generate the most viewings during the first 3 weeks of coming to the market. Properties that linger on the market longer do often struggle as ambitious asking prices discourage potential purchasers in putting forward offers. Buyer registrations have increased with a number having increased their budgets, unable to find the right property.

Agreed sales

A significant increase in sales has occurred  since the start of the year driven by more affordable mortgage offers especially in lower price regions ( £500k -£1m) with a natural flow into the middle sectors (£1.5m-£3.5m). This also suggests a growing number of buyers now consider that the cost of  stamp duty has aligned itself to vendors expectations.

Lettings market insights

Tenant demand that had seen a modest rise, over the previous quarter but has now subsided as tenants demand better amenities before paying asking rents. Meanwhile, the decline in the number of new landlords entering the market for the first time is beginning to turn as lower interest rates is attracting more interest from this sector. The stock market remains its main competitor.

For more from the RICS UK Monthly Residential Market survey, you can download and read more 2023/2024 reports here: https://www.rics.org/news-insights/market-surveys/uk-residential-market-survey

Please feel free to reach out to us for personalised advice and assistance in this ever-evolving real estate market. Find the right team for your needs here.

Regards,

John King, FRICS

Every month the Royal Institution of Chartered Surveyors (RICS) releases its UK Residential Market Survey, providing valuable insights into the current state of the housing market nationwide.

This blog post is bought to you by our Chairman & Managing Director, John King, FRICS, who offers valuable insights from his experience here at andrew scott robertson in Wimbledon Village. He actively contributes his comments to the monthly survey for the London region.

KEY OUTTAKES FROM THE FULL RICS RESIDENTIAL MARKET SURVEY FOLLOWING END OF JANUARY RESULTS 2024

 Residential Sales Market Insights

House prices
House demand has improved this year although, no real sign of any uplift in price growth yet.   London exhibited a more stable trend where reductions in asking prices brought about an increased number of viewings and in some quarters helped improve the selling price. Buyers are out there but agents flying a kite to test market appetite is less appealing resulting in fewer inspections.

There’s a notable resurgence of confidence as sensible pricing will attract buyers enabling sellers to move on. The economic cycle and stubborn inflation rate is partly offset with reduced mortgage rates. Key contributors to this uncertain market is that there are more buyers in the market prepared to wait suggesting that the market will start to gather momentum when the opportunity arise.

New instructions
Activity levels have started off strong surpassing expectations due to price reductions and heightened competition among buyers. New listings and buyer enquiries generate the most viewings, particularly during the first 2 weeks of listing. A rebound occurs when fewer offers are received and that is the time to communicate between parties to help bridge the price gap. Properties that linger on the market longer will struggle.

New buyer enquiries
There is a notable surge in buyer demand, fuelled by favourable mortgage rates.

Agreed Sales
The agreed sales indicator saw an improvement in January, with a net balance reading of +5% compared to the previous month. There is also optimism with expectations of increased sales activity over the next three months. .This positive trend will only slow if  confidence in our commercial markets start to fall away. Vendors be prepared to deal with property enquires before putting your property on to the market as delays in dealing with enquires before contract is prolonging the time it takes to exchange contracts. Along with searches the average time in selling is now beyond 20 weeks.

Lettings Market Insights
Tenant demand increased again in the last three months, however there’s a decline in new landlord instructions as landlords explore sales over rental. An imbalance between supply and demand is still expected to drive rental prices up over the coming months.

For more from the RICS UK Monthly Residential Market survey, you can download and read more 2023/2024 reports here: https://www.rics.org/news-insights/market-surveys/uk-residential-market-survey

Please feel free to reach out to us for personalised advice and assistance in this ever-evolving real estate market. Find the right team for your needs here.

Regards,

John King, FRICS