UK Property Market Losing Momentum

The latest RICS Residential Market Survey for September 2022 is a monthly report of chartered Surveyors and reflects sentiment in residential sales.  The September 2022 RICS results report that enquiries from buyers have fallen for a fifth month in succession with agreed sales also in negative.  The negative number of new instructions coming to the market appears to be keeping some pressure on prices though with a modest rise for now.  However, the RICS note that “the pace of growth has faded markedly in the latest results”.

The RICS say that the results of the survey reflect a property market that is losing momentum with the outlook for interest rates and an uncertain macro picture taking its toll.  The concern over ever rising interest rates is outweighing the any enticement of reduced Stamp Duty rates.

The RICS say “looking at new buyer demand, an aggregate net balance of -36% of respondents cited a fall in enquiries during September (compared to a figure of -38% last time).  As such, buyer enquiries have now fallen in each of the last five months, with all regions/countries of the UK now seeing a downward trend coming through.”

The RICS say that the results of the survey reflect a property market that is losing momentum with the outlook for interest rates and an uncertain macro picture taking its toll.

Despite the fall in new enquiries and sales the limited stock, house prices are still nudging a little higher across the country but 12 month expectations have turned negative.  Respondents to the report cite the expected substantial rise in mortgage rates as a factor putting pressure on the market for the year ahead.  The RICS say that at a national level, a net balance of -18% of respondents now foresee a dip in prices over the coming twelve months.

In the letting market tenant demand has picked up according to a net balance of +42% of respondents.  With a net balance of -13% respondents saying there is a fall in landlord instructions, near-term expectations point to a growth in rental prices.

You can read the full RICS UK Residential Market Survey for September 2022 here.