- 9th October 2020
- Posted by: DMM
- Category: Property Market Reports
This months property market reports show that the UK is still experiencing positive demand for homes. The RICS UK Residential Survey for September 2020 is one such market report that shows demand remains ‘firmly positive’ and house price growth accelerating across England, Scotland and Wales.
The RICS results show that enquiries for property, new sales being agreed and new property instructions are remain very positive for the fourth consecutive month. Respondents to the RICS Survey show a net balance of +52% having had an increase in new buyer enquiries in September.
The growth in buyer enquiries is also being met by seller’s a fourth months increase in new property listings and with a pipeline that looks ‘solid’. Of course, the important element of buyer enquiries and new instructions is whether it is translating into sales and, in this respect, the news continues to be good. The survey respondents to the RICS show a net balance +55% noting an increase in sales agreed over the month and this is broadly in line with August. This sales momentum is also appearing to be shared across England, Scotland and Wales with “exceptionally strong growth in East Anglia, the South West and Yorkshire & the Humber”.
The survey respondents to the RICS show a net balance +55% noting an increase in sales agreed over the month
Annual house price growth at 5.%
All this good news is supported by this months Housing Price Index from the Nationwide for September 2020. The Nationwide report that annual property price growth of 5.0% in September being the highest rate since September 2016. This house price growth rose 0.9% month-on-month after taking into consideration seasonal factors and this too is reflected across most regions.
Commenting on the figures, Robert Gardner, Nationwide’s Chief Economist, said: “UK house prices increased by 0.9%month-on-monthin September, after taking account of seasonal effects, following a 2.0% rise in August. As a result, there was a further pick up in annual house price growth from 3.7% in August to 5.0% in September-the highest level since September 2016”.
“There bound reflects a number of factors; pent-up demand is coming through, with decisions taken to move before lockdown now progressing. The stamp duty holiday is adding to momentum by bringing purchases forward. Behavioural shifts may also be boosting activity as people reassess their housing needs and preferences as a result of life in lockdown”.
“The South West was the strongest performing region, with annual price growth rising from 2.3% to 5.5%. For the first time since 2017, house price growth in southern England (London, Outer Metropolitan, Outer South East, East Anglia and South West) exceeded that in northern England (North, North West, Yorkshire & Humberside, East Midlands and West Midlands).
“Annual house price growth in London continued to edge higher, with prices up 4.4%in Q3, while the Outer South East region saw a 4.8% rise. Northern Ireland was the weakest performing region, with prices up 1.5% year-on-year. “Scotland was one of the few areas to see a slowing in the annual rate of price growth, to 2% in Q3, compared to 4.0% in Q2. Meanwhile, Wales saw annual growth accelerate to 3.8%, from 1.0% in Q2.”
Of course, all of the above is good to hear but it is worth considering some longer-term implications of the fall out from the affect of Coronavirus on the economy. The RICS survey respondents still ‘foresee sales weakening further ahead amid the challenging macro-economic environment, evidenced by the twelve-month expectations series moving deeper into negative territory in the latest returns. Unsurprisingly, contributors continue to cite potential job losses across the economy once the furlough scheme is withdrawn as a significant risk for market activity further ahead’.
We will continue to follow this activity closely!
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