Whilst house prices increased again in January buyer interest and new instructions to sell property fell as bad weather hit activity in the market, according to the latest RICS UK Housing Market survey.
In January, 32% more Chartered Surveyors reported a rise than a fall in house prices up from 30% in December. However, the net balance of surveyors reported that buyer enquiries fell for the first time in 14 months while new instructions dropped for the first time in seven months. 20% more chartered surveyors reported a fall than a rise in new buyer enquiries down from a positive reading of 18% while a net balance of 5% of surveyors saw a decline in new instructions which compares with a positive balance of 15% in December.. The bad weather clearly had a negative affect upon business with newly agreed sales also falling for the first time in 10 months.
However, surveyors are optimistic that these negative signs are a reflection of the extreme weather conditions experienced in the early part of the month. The number of surveyors expecting house prices to rise increased from 12% to 24% while the number of surveyors expecting sales to pick up over the next three months rose from 7% to 24% in January.
Transaction levels fell slightly in January. The number of sales per surveying firm fell from 19 to 18 while the closely watched sales to stock ratio – a measure of market slack and a lead indicator of future prices- fell for the second successive month.
RICS spokesperson Ian Perry said: “The cold snap in January clearly has a huge impact upon both supply and demand in the housing market with activity coming to a halt amidst the seasonal chaos. Activity and interest is likely to pick up in the coming months as the market experiences a spring bounce.
