Further deterioration in housing market forecast by gloomy surveyors

Enquiries, sales agreed and new instructions all declined last month.

New instructions have now declined in 19 of the last 24 months, says the habitually gloomy RICS this morning.

Further gloom lies ahead, according to the institution, with expectations pointing to a further decline over the next few months. The ‘gloom’ rating is at its lowest since 1999.

The RICS said that stock levels stand at an average of 42 properties per branch, close to record lows.

The RICS is expecting “downward momentum” in prices nationally in the near term. Longer term, over the next 12 months, it expects house prices to rise or hold steady in all regions except London and the south-east.

The RICS operates its regular housing market surveys on a complicated system of ‘net balances’, which use percentages. The percentages used in this morning’s survey do not, for example, mean that 36% of surveyors are reporting a fall in new instructions. It does mean that 36% more surveyors are reporting a fall in new instructions that those who are not reporting such a fall.

When it comes to sales expectations, 28% more surveyors are now either flat or gloomy about the foreseeable future than those who are not. This is the poorest balance since the RICS started its surveys in 1999. It does not mean that only 28% of surveyors are gloomy about the housing market’s prospects.

Simon Rubinsohn, RICS chief economist, said: “It is hardly a surprise with ongoing uncertainty about the path to Brexit dominating the news agenda, that even allowing for the normal patterns around the Christmas holidays, buyer interest in purchasing property in December was subdued.

“This is also very clearly reflected in a worsening trend in near-term sales expectations.

“Looking a little further out, there is some comfort provided by the suggestion that transactions nationally should stabilise as some of the fog lifts, but that moment feels a way off for many respondents to the survey.”

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6 Comments

  1. Property Poke In The Eye

    Give them some Red Bull.

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  2. B Mills

    Enquiries, sales agreed and new instructions all declined last month 
    What, in December? No

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  3. Simonedwards

    There may be trouble ahead, however we have seen an increased level of both new instructions and sales agreed this past 2 months compared to the last 2 years in north Cardiff.

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  4. janeearley

    According to the BBC report, 28% of RICS surveyors expect prices to fall over the next 3 months.  Presumably this means 72% of them are positive about the market.  Lets stay positive!  see: https://www.bbc.co.uk/news/business-46891187#

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  5. Woodentop

    Be positive people ..  It doesn’t bode well for only on-liners who have difficulty in surviving in a good market.

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  6. AgencyInsider

    Never have understood why the media pay such attention to RICS pontificating about the state of the market.

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