UK Property Sales Dip but Expectations Still Positive

13th November 2021
Posted by: DMM
Category: Uncategorised

The October 2021 RICS Residential Survey reports that UK property sales agreed dipped over the month. However, the lack of new properties coming to the market is keeping house price growth up with buyers having limited choice. Demand is showing some signs of improvement and expected to stabilise with expectations of the near term sales period is modestly positive, according to the RICS respondents.

The depressed level of new instructions coming to the market is a key factor holding back market activity. Actual activity has, in this regard, been in negative territory for seven months, they say. Virtually all areas of the country are seeing positive house price growth still, with most of the RICS respondents expecting this trend to continue for the next 12 months.

The RICS Report also touches on the COP26 conference and whether climate change issues were affecting buyer decisions when choosing a new home. Their feedback suggests that “such factors appear to be influencing the market, but only to a limited extent. On balance, contributors note an increase in demand for energy efficient homes. Around one-third of those responding to the survey stated that buyer demand for energy efficient homes has risen over the past twelve months. That said, the majority report only a modest up-tick in buyer appetite as opposed to a significant pick-up.”

You can read the full RICS Residential Survey Report here.

We consider that with the continued demand for homes, and especially those homes with access to outside space, it remains a good time for UK developers. With positive pressure on property prices and buyers having to make quick decisions, a quality new home is an attractive option. Those property developers with a good property design, in a good location, should be seeing strong interest even from an off-plan stage.