Fledgling property boom under threat of bust as coronavirus fears step up

Concerns have been raised by estate agents about the impact of coronavirus.

The RICS, reporting this morning, said that sales rose for a third consecutive month in February.

Buyer demand was up, as were new instructions, and more agents said they expected increased sales this year.

The RICS said it was the first time since 2014 that new supply had increased for three consecutive months.

However, supply is still very low.

The organisation also reported rising rental demand and falling supply, extending a decline first recorded in 2016.

The RICS report broadly covers the period before coronavirus looked like being a crisis in the UK, and it was also compiled before yesterday’s Budget.

RICS economist Simon Rubinsohn said: “Inventory levels are still at historically low levels despite this but the firmer trend in appraisals suggests that the picture could improve over the coming months, providing that coronavirus doesn’t become more of an inhibitor of activity in the sector.”

The RICS said that concerns have been raised over coronavirus by a number of property professionals.

The industry bodies have yet to issue public advice to agents on viewings protocol, but Propertymark has said that it has had enquiries from members on the subject.

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One Comment

  1. James Wilson

    The ‘Boris Bounce’ has turned into a ‘Covid Collapse’ if Foxtons share price is any guide to the market.   In terms of supply, there is obviously a scenario where a huge amount of Baby Boomer supply comes onto the market over the next 12 months.   Will be interesting to see how the market would handle that.   I guess in London international money launderers will still be there to soak it up.

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