Buyer demand has now fallen continuously for a full year, estate agents who are members of RICS have reported.
A gloomy RICS UK Residential Market Survey for March showed 17% more respondents saw new buyer enquiries fall than rise, a 12th consecutive month of negativity.
Sales were also down, with 20% more reporting a drop than a rise, continuing a trend since February 2017.
The report said low demand was compounded by the lack of fresh stock coming on to the market.
Last month the flow of properties slowed once again, the report shows, marking the seventh consecutive month respondents reported a fall in the number of houses being put up for sale. As such, average stock levels on estate agents’ books remain near an all-time low at around 42 properties per branch.
Just over half (55%) of respondents in London also reported a rise in the number of properties being withdrawn from the market compared with this time last year, with anecdotal evidence suggesting this reflects the differing expectations of buyers and sellers.
There was some optimism about the future, with 17% more positive about an increase in sales over the next year, but that was down from 34% previously.
Simon Rubinsohn, RICS chief economist, said: “The latest RICS results provide little encouragement that the drop in housing market activity is likely to be reversed any time soon.
“Apart from the implications this has for the market itself, it also has the potential to impact the wider economy, contributing to a softer trend in household spending.
“This could make Bank of England deliberations around a May hike in interest rates, which is pretty much odds-on at the moment, a little more finely balanced than would otherwise be the case.
“The downshift in sales for the time being continues to be more visible in London and the south-east, with many other parts of the country continuing to show rather greater resilience.
“Feedback on expectations regarding transactions suggest this divergence will persist over the coming months.”
The issue with asking a cross section of the industry that are typically made up of a more old school group of individuals with potentially older school thinking is not really going to give you a true reflection of the market.
Personally we are beaten buyers off like a scene from Zulu.
We have seen a massive jump in properties going to best and final sealed bids.
Only to then get downvalued by the Ric’s surveyor.
But Mr Valuer, we had 40 viewing, 8 offers and they were all withing 5k of each other and you have now down valued it by 15k on what’s been agreed.
However this might be just our own local market conditions.
P.s Please don’t take offence by the old school comment, just saying survey should perhaps talk to some of the more modern cross sections of the industry to get a balanced view.
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Where are you based, may I ask?
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Newport/Cardiff, South Wales
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Paul you cant blame them Newport has gone silly because of the Severn Bridge Tolls -Leafy Ringland !!
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Not sure this reflects that even over 60’s are online looking these days. It’s literally only the stupid and paranoid and ice cream lickers who actually contact us these days. Praise the Lord for giving me less stupid people to talk to.
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I’m not quite as bullish as you but have to agree the market has picked up very nicely in Essex, after a slow start in January and much of February. We certainly have buyers out-bidding each other and a continuing lack of stock. Fees seem better though.
When looking at the RICS figures you have to take into account the type of businesses who are reporting – as you say very old school.
It is also worth asking the question as to exactly how many respondents they have for the survey. If they are anything like NAEA it may be am many as 12!
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The RICS brigade are gloomy
What’s new?
Regional Agents with high head office overheads are at risk for sure in this climate.
Nimble smaller operations will be able to duck and dive a little easier and provide a better service.
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I wish we we were smaller and a bit more nimble, unfortunately 26 mouths to feed means the pressure is on daily to earn money, not just “list” for vanity or a good board location or value high to reach a target to keep the area manager happy..
No we need to make money! Which thankfully even in these crazy times we are managing to do.
200 Sales Agreed in the first 100 Days of 2018
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No idea why the RICS pronouncements on the state of the market get such wide and unjustified coverage. They don’t have anything like a representative cross section in the market. I hate to say it but if the press want a view on levels of instructions they should ask Purplebricks or Rightmove. (Ducks below parapet and rams on tin hat)
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Lettings agent here but i’ve seen a noticeable increase in activity for our sales team since the turn of the year, although still seems to be a gap between buyers and sellers expectations…. (S.W London)
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Best people to comment on market conditions are high street estate agents. I am biased though:)
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