Buyer enquiries fall for eleventh consecutive month as supply hits new low: RICS

Unsurprisingly, there is a regional dimension to the activity results with new buyer enquiries continuing to increase in Scotland, Northern Ireland, Yorkshire and Humberside and the North. The most negative results are in the East Midlands, London and the South East with the trend in most other regions broadly flat.

RICS says the figures "suggest that the government’s attempt to breathe fresh life into the market though eliminating the stamp duty charge for most first-time buyers in the Budget is not having a significant impact on overall demand".

In another sign of the increasingly challenging market environment, the average time for a sale to complete from listing has continued to edge upwards, from sixteen a half weeks at the start of 2017 to eighteen and a half weeks a year later.

House price expectations amongst respondents suggest very little change in house prices over the coming months. The data shows stark regional variations with the price readings particularly strong in Wales, the North West, Northern Ireland and the East Midlands. Conversely, feedback on prices remains negative to a greater or lesser degree in London, East Anglia, the South East and the North.

However contributors to the survey remain more positive about medium-term prospects, with 12 month sales expectations in positive territory for the fourth consecutive month and at its best level since February last year.

RICS says whether this improvement can be sustained will in part depend on whether more supply comes to market.

Founder and CEO of Emoov, Russell Quirk, commented: "The market has certainly slowed to an extent, but while some are noticing a reduction in buyer enquiries, their experience isn’t completely representative of the wider market. Halifax reported yesterday that UK home sales exceeded 100,000 transactions for the thirteenth consecutive month and there was a notable uplift in mortgage approvals, so there is definitely still a big appetite for UK property.

"We for one have recorded a consistent level of buyer demand across the last year, so perhaps talking the market down is easier to stomach for the average traditional agent while they continue to lose market share as the industry evolves. 
 
"A dwindling index of stock alongside sustained buyer interest suggests the market is in better health than many are giving it credit for. Properties simply aren’t staying on the market for long and this interest, coupled with low supply, will see prices remain on their upward curve as the market continues to favour UK home sellers, not buyers.”