Housing sales to moderate over next three months: RICS

1% more chartered surveyors saw a fall rather than a rise in sales last month, and figures for predicted sales over the next three months across the UK "saw a noticeable slow down" with only 4% more respondents anticipating an increase in sales over the period, down from 18% previously.

Supporting the predicted slow start to 2017, the survey showed that the number of new house buyers rose only marginally in December following much stronger figures for the previous four months. New instructions to sell also failed to see any pick-up, marking the tenth straight month without any improvement.

Respondents to the survey continue to highlight low stock levels as a key concern and a lack of choice for would-be buyers is weighing heavily on the UK housing market.

However, in the longer term, the twelve month sales outlook is positive with 32% more contributors expecting sales to rise rather than fall over the year ahead, compared with 31% in November. Looking at the differing markets within the UK, Scotland and Northern Ireland saw the strongest twelve month expectations, although figures are in positive territory across all parts of the UK.

Additionally, some parts of the UK reported a rise in sales over December, with Wales, the South West, and the North East all seeing an increase.

Looking at the continued growth in house prices, 24% more chartered surveyors saw a rise rather than fall in prices in December, from +29% in November. Although this suggests prices are still rising firmly, the latest figure does end a run of four successive months of higher house price balances.

Regionally, Central London is the only area where in which prices are falling with the price indicator having remained in negative territory for ten consecutive months.

Brian Murphy, Head of Lending at Mortgage Advice Bureau, commented: “The data released by the RICS today is a survey of members, therefore provides us with a valuable view ‘from the coalface’ from those surveyors who participate.

"In December, respondents to the survey observed a cooling in sales activity in most areas, which is in line with seasonal trends, although buyer enquiries were reported to have risen for the fourth month in succession, albeit marginally in December, which potentially illustrates ongoing consumer confidence in the UK housing market."