- 15th August 2022
- Posted by: DMM
- Category: Property Market Reports
The latest RICS UK Residential Market Survey for July 2022 reports their latest findings on activity in the property market with buyer enquiries continuing to decline.
In the month there was a continued easing of the market with demand and sales in modest negative territory report the RICS. Increasing interest rates and a weakening macroeconomic landscape is behind the softening momentum according to the report respondents. However, it is noted that the survey sample was largely gathered prior to the Bank of England’s latest point increase.
So, across the UK the momentum of new enquires is down for the third successive month and is the longest stretch of decline since the pandemic. It is perhaps not surprising then that RICS say that sales agreed were also down -13% in the month with future sales expectations from respondents also looking rather negative.
The net balance of new instructions coming to the market was down -5% with estate agents listings at an all time low. This lack of supply is though helping keep prices up with +63% of respondents reporting an increase in house prices during July.
The RICS Residential Market Survey is a monthly sentiment survey of Chartered Surveyors who operate in the residential sales and lettings markets. You can read the whole report here including house price performance over the past three months and national house price expectations.
“It’s likely that the impact of interest rate rises will gradually filter through during the rest of the year, but right now the data shows that they are not having a significant impact on the number of people wanting to move.”
Rightmove Activity in the Property Market
Today’s Rightmove House Price Index reports a -1.3% drop in house prices but that this is the first price fall of the year and on par with the average August dip over the past ten years. With buyers prioritising holidays over house hunting and new sellers pricing for a quick sale so as to move before Christmas, the price drop is not unusual.
Rightmove also show a drop in buyer demand with enquiries to agents down 4% on 2021 but remain 20% up on 2019. Several indicators point to activity in the market continuing to cool from the lofty heights of the last two years.
It’s likely that the impact of interest rate rises will gradually filter through during the rest of the year, but right now
Tim Bannister Rightmove’s Director of Property Science commented “Several indicators point to activity in the market continuing to cool from the lofty heights of the last two years. It’s likely that the impact of interest rate rises will gradually filter through during the rest of the year, but right now the data shows that they are not having a significant impact on the number of people wanting to move.
Demand has eased a degree and there is now more choice for buyers, but the two remain at odds and the size of this imbalance will prevent major price falls this year. For those looking to move who are concerned about interest rate rises, it’s important that they get a mortgage in principle early on in their moving journey to understand what they could afford to borrow and find out about the rates available to them to assess what they are able to repay each month.”
You can read the full Rightmove House Price Index here and let us know below what your expectations of activity in the property market are and how that may affect your development plans.
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