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
