House prices are expected to dip nationally over the coming months.
The RICS this morning said that the drop is expected to be short term, and will be the first decline in four years.
House prices in central London are already dropping, and while prices are continuing to climb “modestly” over the rest of the UK, surveyors are expecting falls over the next three months.
London and East Anglia are expected to bear the brunt.
The RICS also reports that buyer demand fell in May for a second consecutive month, and at the fastest pace since 2008.
RICS chief economist Simon Rubinsohn said: “What we are looking at is a short-term drop caused by the uncertainty resulting from the forthcoming EU referendum coupled by a slowdown following the rush to get into the market ahead of the tax change on the purchase of investment properties.
“There is not at this point a sense that a fundamental shift is taking place in the market.”
The RICS said that in May, the number of agreed sales fell for a second consecutive month.
The organisation is predicting that UK rents are set to increase by 4.7% each year for the next five years, against annual house price rises of 4.1%.
Despite a short-term drop in house prices, just over half of the RICS members who contributed to this morning’s report expect house prices to be higher this time next year than now.
Comments by RICS members are revealing, with many citing a slowdown, the referendum, tax changes, and very low stock.
Neil Hunt, of Wilkins Vardy in Chesterfield, said: “If the government’s intention was to kill off the buy-to-let market, their strategy seems to be working perfectly.”
In a similar comment, Benson Beard of Bective Leslie Marsh in Chelsea said: “If Osborne’s aim was to bring the central London market to a standstill, he has succeeded.”
If you were to ask most agents ‘off the record’ they would probably agree that price growth has levelled off and is in the process of declining.
As is the case in this industry, when asked ‘on the record’ the old smoke and mirrors trick will kick in and the reply will be “Everything’s fine, business is good”
Get ready for a rocky ride folks.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
That will explain a few down valuations this week then.
Also any surveyor who values up an affordable house that is 20% over priced because it is labelled ‘affordable’ should be jailed. Absolute joke of a system our housing market is.
best thing is they then downvalue a regualar house 3k just in case and base this on a hunch….
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Only South East / London is under any real risk of a house price correction I suspect they will stagnate, like wot I said before! And the rest of the UK is now on catch up mode.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Try this one with a surveyor that down values, you watch their face go red for their opinion is always incorrect ….
DEFINITION OF MARKET VALUE
The probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: (1) Buyer and Seller are typically motivated; (2) both parties are well informed or well advised and each acting in what he/she considers his/hers own best interest; (3) a reasonable time is allowed for exposure in the open market; (4) payment is made in terms of cash or in terms of financial arrangements comparable to; and (5) the price represents the normal considerations for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register