- 11th December 2020
- Posted by: DMM
- Categories: Property Market Reports, Uncategorised
The RICS UK Residential Market Survey has reported this week that demand for property has continued, with house prices sharply higher in most areas although there are signs that the pace is now moderating. This easing in momentum gives ‘near term’ expectations to be flat whilst, more worryingly, their twelve month outlook remains slightly negative.
The RICS reports that at the national level, a net balance of +27% of their respondents cited an increase in new buyer enquiries during November which, whilst positive, is down from +42% in October. This shows an easing in each of the past four months from the high of +75% in July. New properties coming onto the market rose in November, albeit at the smallest level in the recent run, which is the sixth month in succession where new instructions have picked up at the headline level “Meanwhile, a headline net balance of +25% of survey participants saw an increase in agreed sales over the month (compared to a reading of +41% in October). When disaggregated, sales continue to rise across most parts of the UK according to survey feedback, with Wales and Northern Ireland still seeing particularly strong growth. That said, some areas such as the West Midlands, East Midlands and Scotland have begun to see a flatter trend emerge, as the latest readings fell out of positive territory.”
“with house prices sharply higher in most areas although there are signs that the pace is now moderating”
Halifax also report house prices sharply higher being up 1.2% on October
The Halifax has also this month reported that, on a monthly basis, houses prices in November were 1.2% higher than in October. In the latest quarter (September to November) house prices were 3.8% higher than in the previous three months. Not only that, but the Halifax report that the November figures are some 7.6% higher than in the same month of 2019.
Russell Galley, Managing Director, Halifax, said: “House prices rose by more than 1% in November, adding almost £3,000 to the cost of a typical UK home. At just over £253,000, the average property price has risen by more than £15,000 since June. In percentage terms that equates to 6.5% -the strongest five-monthly gain since 2004. With mortgage approvals at a 13-year high, the current market continues to be shaped by a desire for more space, the move from urban to rural locations and indications of a trend for more home working in the future.”
“As the March deadline for the stamp duty holiday approaches, properties sold to home-movers recorded a much higher rate of annual house price inflation (+7.9%) than first-time buyers (+5.8%).”
“The housing market has been much more resilient than many predicted at the outset of the pandemic, and indeed many households remain confident about further price growth next year. However, the economic environment continues to look challenging. With unemployment predicted to peak around the middle of next year, and the UK’s economy not expected to fully recover the ground lost over 2020 for a number of years, a slowdown in housing market activity is likely over the next 12 months.”
With the house prices sharply higher across most of the UK we can enjoy this period but we’ll await news from the leading reports next month to see if the moderation is a seasonal adjustment.
In the meantime, if you are looking for property development finance then you can get free, independent, assistance from our broker team here, do an online instant search of the market here, or simply call us on 0207 096 2003.