Brexit continues to drag on market activity as estate agents today report a continuing decline in buyer demand, instructions, listings and sales.
The latest RICS Residential Market Survey for March shows that more of its member agents have seen a drop rather than a rise in buyer demand for the eighth consecutive month, which also kept agreed sales negative.
The average time taken for a residential property to sell, from listing to completion, remained unchanged at 19 weeks, the longest since this series was introduced in 2017, RICS said.
This figure is highest in the south-east at 21.5 weeks on average.
Property supply has also become progressively weaker, with more agents reporting a drop in listings.
Despite this, surveyors were still more hopeful of a rise rather than a fall in sales activity over the next 12 months.
Much of the blame for the market slump was placed on Brext uncertainty, but RICS is also warning of a slowdown in house building.
Simon Rubinsohn, chief economist for RICS, said: “Brexit remains a major drag on activity in the market with anecdotal evidence pointing to potential buyers being reluctant to commit in the face of the heightened sense of uncertainty.
“Whether any deal provides the shift in mood music envisaged by many respondents to the survey remains to be seen, but as things stand, there is little encouragement to be drawn from key RICS lead indicators. We expect transactions to decline on this basis.
“Arguably more significant still are the signs that developers are continuing to adopt a more cautious stance with the trend in new residential starts now flatlining.
“Against this backdrop, there is little possibility of delivering the uplift in supply necessary to address the ongoing housing crisis.”
Comments (5)
Not like the RICS to be pessimistic and negative…whatever next, down valuations, surely not
Dear Simon Rubinsohn, chief economist at RICS,
As a former Fellow of RICS I wish to appeal to you as the representative of that esteemed institution, please investigate the fact that all housing markets across England and Wales are suffering from structural decay caused by malfunctions within themselves. In order to do this I’m posting here publicly.
It is not Brexit that is causing the dramatic slowdown in sales, nor is it because of insufficient house building. Builders have been constructing like crazy whilst making huge profits into the bargain!
To be absolutely clear the structural problems causing the housing markets to dip are directly connected to the way estate agents go about attracting instructions to sell and the way they then promote these instructions in the marketplace.
Its up to all agents to help bring sales and purchases together by correctly adjusting asking prices to match the market. They are not doing this and so these are the functions that need to be reviewed.
Over stating asking prices on a large scale, as is currently reported to be happening, is not and cannot help make for increased sales in the market.
Instead it’s up to agents to work in concert and help get the housing market functional for the majority of house owners at long last. My proposals for achieving this are clearly set out online if you Google The Hendry Solution. May I ask for your attention in reviewing these proposals and for you to come back to me in person to discuss the issue, in preference to doing this in the public domain?
Having read your proposal … blind faith comes to mind. Some suggestions have been tried in other developed countries and frankly is corrupt and really are not offering anything new and often calling what is already available by another name.
Doesn’t bode well for all those hi-tech cheap fee model on-line only agents who require volume to survive. So many have gone in a better market.
I can barely get solicitors to exchange in 19 weeks. Nevermind marketing time.