RICS Archives - Andrew Scott Robertson

Posts Tagged ‘RICS’

A quick look at the latest RICS UK Residential Market Survey (October 2023)

Posted November 10, 2023 by Lea Bailey

Every month the Royal Institution of Chartered Surveyors (RICS) releases its UK Residential Market Survey, shedding light on the current state of the housing market across the UK.

This blog post is brought 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 FOR OCTOBER;

Residential Sales Market Insights

Buyer Demand
Despite challenging market conditions, there’s an improvement in new buyer inquiries, This indicates a more optimistic outlook compared to previous months.

Agreed Sales
While the net balance for agreed sales in October still reflects a challenging market (-25%) compared to this time last year, there’s a positive shift from figures recorded in August and September. What is evident is the timeline from agreed sales to legal completion, this has moved out from an average of 13 weeks to over 20 weeks. A cautious outlook for the remainder of 2023 and early 2024 remains on the cards as the cost of living continues to rise.

New Instructions
The flow of new instructions has begun to slow, as new year aspirations by vendors for a better market takes hold. However, with buyer demand still evident new stock coming to the market now will result in a flow of viewings if valued correctly.

House Prices
In October, the headline indicator on house price trends posted a net balance of -63%, when viewed across the country. Locally a much better picture emerges showing an improvement from previous months indicating between -5 to -10% is the achievement rate when set against current asking prices.

Lettings Market Insights

In the lettings market, tenant demand remains positive, although there’s a slight easing in demand compared to previous quarters. Landlord instructions have declined as rental levels have peaked contributing to a further reduction in listings, due to in part of landlords placing their properties on the market for sale instead.

In conclusion the lettings market has become a positive and safe investment over the years and this will remain to be the case for years to come providing interest rates remain no higher than their current level, this is underpinned by the build to rent market having stalled.

For more from the RICS UK Monthly Residential Market survey, you can download and read more 2023 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

A quick look at the latest RICS UK Residential Market Survey (August 2023)

Posted September 26, 2023 by Lea Bailey

Every month the Royal Institution of Chartered Surveyors (RICS) releases its UK Residential Market Survey, shedding light on the current state of the housing market across the UK.

Key outtakes from the full RICS Residential Market survey for August;

Mortgage rates putting pressure on house prices
House prices are facing downward pressure, and it’s evident that high mortgage rates play a significant role in this situation. For potential buyers, the cost of borrowing is becoming a significant factor in their purchasing decisions. The relatively high mortgage rates are creating challenges in affordability, especially in areas where prices had surged during the pandemic.

Tenant demand outweighs supply
In the lettings market, the RICS survey paints a more positive picture, with tenant demand surpassing the available rental properties. This shortage of rental properties is a significant challenge for tenants seeking affordable housing options.

Rental prices on the rise
Given the imbalance between tenant demand and landlord instructions, rental prices are expected to rise further in the coming months. This can pose challenges for tenants looking for affordable rental options.

The RICS Residential Market survey for August 2023 highlights a market under various pressures, including high mortgage rates affecting house prices and strong tenant demand in the lettings market. As one of the leading residential sales and letting agents in Wimbledon and Wimbledon Village, we are committed to assisting both buyers and renters in navigating these challenges. Our team of experienced property professionals is here to provide expert guidance and tailored solutions to meet the unique needs of our clients, we have dedicated departments within the business that can assist you.

For more from the RICS UK Monthly Residential Market survey, you can download and read the full August 2023 report 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. Contact the right department for your needs here.

Regards,

John King, FRICS

ASR Commercial in the News

Posted November 1, 2017 by Victoria Nicol

We are pleased to report that Ian Ailes FRICS, Commercial Director for Andrew Scott Robertson was featured in the recent RICS Q3 2017 UK Commercial Property Market Survey.

The RICS survey is widely recognised as one of the best indicators of developments in the UK commercial property occupier and investor markets. The results of the Q3 survey show that both investor and occupier demand edged up during Q3 for UK commercial property, but there is still a significant difference between sectors with industrial clearly outperforming.

Survey in brief

Rent expectations upbeat for industrial space, but flat for offices and negative for retail
Pick-up in both domestic and foreign investment demand at the national level
London continues to display more cautious sentiment with 73% of respondents in Central London sensing the market to be in some stage of a downturn.

The view from ASR

Ian Ailes comments in the report ?The market is suffering from a negative view and there is nothing on the horizon likely to improve perception. The next event is the Chancellor?s autumn statement but we need something positive in it to incentivise businesses ie less taxation which will generate a larger tax collection. Money is cheap but no one wants to borrow if rates may rise. The Bank of England needs to address this. Threats of interest rate rises are over recessionary. Domestic SDLT needs to be reduced or made fairer to stimulate sales and so new builds from which the economy takes its lead.?

The view from RICS

The feedback to the Q3 survey reflects some of the broader macro issues, with the underlying momentum in the occupier market a little firmer further away from the capital. This is also mirrored in valuation concerns with around two thirds of respondents viewing the London market as being dear.

A key issue going forward will be how the market responds to the likely first interest rate rise in a decade next month. Given that expectations are only for a modest tightening in policy, the likelihood is that it will be able the weather the shift in the mood music. But this remains a potential challenge if rates go up more than is currently anticipated.

To read the survey in full click here.

Sales activity in the UK residential market is increasing, but a slow start to 2017 is expected due to a lack of stock

Posted December 12, 2016 by Victoria Nicol

The November RICS Residential Market Survey shows sales activity in the UK residential market is increasing, with buyer demand edging upwards for the third consecutive month. As stock continues to dwindle, the headline RICS price balance has risen to 30% in November, which is the highest reading since April, and most of the UK is seeing an increase in prices.

On the supply side of the market, supply shortages remain a constraining feature and indeed, respondents across most parts of the UK highlight the supply shortage as a very dominant feature of the market at present.

rics-sales

The outlook over the year to come is positive in all areas with 40% of respondents forecasting house price growth, although contributors are less confident in the prospects for London prices relative to other areas over the year to come with larger properties in the capital expected to show the slowest growth. Tax changes over the past couple of years are widely cited by respondents as an impediment to the level of transaction activity at higher price points.

In the Lettings market, tenant demand rose only marginally, as is usual around this time of year, with 15% more contributors reporting a rise rather than a fall. Meanwhile, new landlord instructions fell slightly at the headline level with 6% more contributors seeing a decline rather than a rise. Tenant demand continues to outpace supply across most areas and rents are expected to continue to rise.

The London rental market remains somewhat of an outlier with surveyors continuing to report a decline in tenant demand (a trend that has been visible for most of the last year) and rent expectations in negative territory for the fifth consecutive month.

rics-lettings

At Andrew Scott Robertson, we have noted that sales activity continues to be busy at the lower end of the?market for houses up to ?1.5m. Activity in flats up to this price range has slowed; a factor caused by the buy-to-let market having cooled. This month has seen a slowdown of instructions while vendors review their plans for 2017, whilst there has been a steady flow of new buyers on the block ready to buy.

Stock levels on the rental side are improving but applicant levels have slowed. Following the Autumn statement, agents letting fees remain topical with both landlords and applicants, and we would predict that rental adjustments are on their way.