Awaiting the dawn
RICS UK Housing Market Survey
The Royal Institution of Chartered Surveyors published their latest UK Residential Market Survey today
What they said
New buyer enquiries on the up
Shortage of homes for sale continues to underpin price growth
Sales expectations remain modestly positive for both the near term and year ahead
It is good news for the housing market that new buyer enquiries have increased for the fourth month in a row, especially as we had expected a longer and deeper lull following the end of the COVID induced Stamp Duty Holiday.
However, home buyer demand continues to outstrip the supply of homes for sale, and in December, a net balance of -14% reported a decline in new listings, the ninth 'negative' month in a row.
This continued demand and supply balance will, in our view, underpin house prices and rising prices may encourage more sellers onto the market during the traditional spring selling season.
The lettings market also appears to be displaying a similar demand and supply imbalance, although whereas most homeowners use an agent to sell their home, we estimate that about half of landlords let their homes directly and the dynamics in this market may differ from those seen by the estate agents.
In short, the market is poised and awaiting the dawn of the Spring selling season. Homebuyers are keen to buy, estate agents are keen to do business, all that is missing is the supply of homes to sell. Hopefully, as life starts to return to normal, and the days get longer estate agents will have more homes to sell and housing market activity will start to pick up.