Demand for residential property increases for second month

The latest figures from the Royal Institution of Chartered Surveyors (RICS) indicate that buyer demand in Britain has risen for the second consecutive month. However, supply levels remain very low.

Data from the report show that in the UK, 10% more respondents reported rises in property buyer interest, despite the number of properties on the market dropping.

Rise and falls

Additionally, the results of the investigation show that prices have increased at a national level, with 23% more respondents recording growth, up from 18% in September. Those in central London on the other hand saw the eighth consecutive drop in prices.

16% more respondents in London recorded a fall rather than rise in prices. RICS said that this figure shows the goings-on in in London as opposed to the outer boroughs, where significant growth is being recorded.

In general, the increase in property prices is being driven by a fall in properties on the market. Another drop in new instructions was seen in the last month.

Simon Rubinsohn, chief economist at RICS, noted: ‘The dire shortage of available housing across the UK is continuing to push price upwards, regardless of the uncertainty linked to the ongoing discussions surrounding Brexit.’[1]

‘We are only weeks away from the Autumn Statement and it will be interesting to see what measures, if any, the Chancellor will put in place to increase housing supply and create a more affordable market,’ he continued.[1]

Demand for residential property increases for second month

Demand for residential property increases for second month

Slight increases

The report also shows that agreed sales saw a slight increase during October, slightly more investors taking out landlord insurance on a property. 5% more chartered surveyors saw a rise in activity.

Projections for price growth in the next quarter have also risen, with 18% more respondents expecting increases. Property price expectations are positive in all areas of Britain, except central London.

In the lettings market, tenant demand has risen sharply in the three months to October, with 29% of more surveyors seeing an increase in enquiries. Unsurprisingly, demand continues to outpace supply in all areas with the exception of London.

Expectations for rental growth also rose, with 34% more respondents foreseeing a rise rather than fall in the coming months.

[1] http://www.propertywire.com/news/europe/buyer-demand-uk-residential-market-second-month-row/

 

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