RICS Survey More Pesimistic About State of Market

The latest RICS UK Residential Market Survey for October 2017 reports a softening of demand on a national level with most regions displaying a flat to negative trend in the latest results. Meanwhile, forward looking indicators are suggesting momentum is likely to remain subdued, at least in the near term.

The report goes on to say that their “respondents in London continue to report downward pressure on prices, similarly, the price gauge remains negative in the South East (albeit to a significantly lesser extent than in the capital), whilst the areas of East Anglia and the North East also returned readings below zero.By way of contrast, the price balances elsewhere remain generally firm, with the North West of England, Wales, Scotland and Northern Ireland all returning numbers consistent with further house price gains.

When contributors were asked to compare sales prices with asking prices over the past two months, it predictably revealed greater discrepancies for more expensive homes. Nationally, for properties marketed at more than £1m, 71% of respondents reported sales prices coming in below asking prices (compared with 67% the last time the question was asked in July).

For homes listed at between £0.5m and £1m, a combined 62% of contributors noted sales prices were coming in lower than asking prices (compared to 57% in July).

Finally, in terms of homes marketed at less than £0.5m, the largest share of respondents (42%) noted asking and sales prices were at roughly the same level, although a still significant 32% stated sales prices were up to 5% under.
In terms of activity, the New Buyer Enquiries series continued to signal a softening in demand”.

The above contrasts with the Halifax whom report that the annual rate of growth has continued to rise for the third month in succession, rising from 4.0% in September to 4.5% in October.

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