RICS: Housing market showing signs of recovery
The Royal Institute of Chartered Surveyors' (RICS) latest UK Residential Market Survey, dated 9 July 2020, has confirmed that the volume of individuals looking to buy has increased in June.
Here's the key headlines:
61% of the survey respondents have indicated that they've experienced an increase in buyer enquiries over the last 4 weeks.
42% of respondents have confirmed an increase in property listings
43% of respondents have indicated that they are processing an increase in completed housing transactions
The number of average properties on estate agents books remains close to all time lows.
Respondents have reported a decline in house prices (for the third consecutive month)
Respondents continue to deal with a backlog of sales held up by lockdown
For the next 3 months, +16% of participants expect sales to rise, however, on a 12 month basis, respondents expect to slip back into negative territory, pointing to a need for further support to instil confidence back into the market.
Simon Rubinsohn, RICS chief economist, says:
“Key activity indicators in the RICS survey suggest that the market is enjoying a short term bounce following ending of the lockdown, with sharp spikes in the metrics tracking both buyer enquiries and new instructions,”
“However, there are worrying signs that this rebound may quickly run out of steam against the backdrop of a tightening in lending criteria by mortgage providers, and the uncertain macro environment particularly with regard to the employment picture. Respondents to the survey highlight both of these issues in explaining the broadly flat picture regarding sales expectation beyond the immediate uplift."
“Meanwhile, the issues around the sales market appear to be shifting sentiment in the lettings market with, somewhat ominously given the prevailing economic climate, rent expectations beginning to edge upwards once again.”
Tamara Hooper, RICS Policy Manager, says:
“Government must ensure they keep the public at the heart of their interventions when rebuilding post Covid. An ask RICS has called for since March is the temporary removal of stamp duty for all home movers, not just first time buyers, and this specific change will demonstrate Government’s confidence in the residential sector as well as encouraging the economy and the country to start moving again."
Read more here.
The Government has as we know now implemented a cessation of stamp duty on home purchases up to the value of £500,000 in England and Northern Ireland until 31 March 2021.
What is your response to these survey results? Send us your thoughts to firstname.lastname@example.org. We look forward to hearing from you.