Near term expectations deteriorate slightly

  • Near term expectations turn slightly negative again
  • Buyer enquiries increase marginally for the second consecutive month
  • Property sales sluggish
  • Landlord instructions continue to fall across the lettings market

The July 2019 RICS Residential Market Survey results: some of the improvement seen in last month’s  near term expectations has been marginally reversed this time out. The outlook for prices for the next three months has turned slightly negative once more, while respondents envisage sales remaining flat over the same time frame. New buyer enquiries picked up slightly for the second consecutive month, although this has yet to feed into any meaningful increase in agreed sales.

New buyer demand: contributors reported an increase in enquiries during July. This marks the second report running in which a small increase has been cited with data collected showing a slightly positive trend in the majority of UK regions.

Newly agreed sales edged down a fraction across the UK over the month some with respondents across the North East and the West Midlands in particular reporting a reasonably solid pick-up during July.Near terms sales expectations eased back into neutral territory and sentiment is now only modestly positive for the next year, with respondents expecting sales to rise. Survey participants across the North East, North West, Wales and the West Midlands are more optimistic than the national average.

New instructions to sell were seen as unchanged for the second successive report following a string of eleven consecutive monthly declines in fresh listings. Respondents continue to report that the volume of market appraisals undertaken over the month was down on the same period of last year. Prospect of a sustained rise in supply of property coming onto the market in the immediate future is feared doubtful.

It is reported prices are rising at a solid pace in Northern Ireland, Scotland and Wales, however prices continue to fall in London, the South East and East Anglia.

Feedback from contributors is still suggesting that higher priced tiers of the market are facing a more challenging environment with 69% of respondents noting that, for properties marketed at over £1m, sales prices are coming in below asking prices. However, for properties listed at up to £500k and below, 59% of survey participants report sales have been at asking price.