Supply outstripping demand: RICS

Published on

The net balance of new instructions outpaced buyer interest for the second consecutive month, according to the latest RICS latest UK Housing Market survey.

New instruction and new buyer enquiries rebounded in February following a weather skewed dip in January with both net balances turning positive. For the second consecutive month the new instructions net balance outpaced the new buyer enquiries net balance – the first sustained shift towards supply for two years.

Seven% more chartered surveyors reported a rise than fall in new buyer enquiries compared with the previous month up from a negative reading of 20% while a net balance of 15% of surveyors saw a rise in new instructions which compares with -5% in January.

17% more Chartered Surveyors reported a rise than a fall in house prices down from 31% in January. Surveyors in the regions are still reporting house price gains in most areas but the net balances are a little less positive than they were. However, surveyors in the North, Yorkshire and Humberside, Wales and the West Midlands are reporting house price falls.

The price expectations net balance also remains in positive territory but the latest reading is the lowest since July 2009. Meanwhile, the closely-watched sales to stock ratio is also beginning to edge lower which is consistent with the housing market becoming a little less tight.

The newly agreed sales net balance fell for the second consecutive month but surveyors still expect sales to increase indicating that the recent drop in transactions is a reflection of recent adverse weather conditions.

Jeremy Leaf, RICS spokesperson, said: “Most market indicators are still positive and consistent with further house price increases. However the magnitude of the gains going forward is likely to continue to ease reflecting the fact that new supply coming onto the market is starting to outstrip fresh demand.”””

COMMENT ON MORTGAGE SOUP

We want to hear from you!
Leave a comment and get the conversation started.
You need to register to post, so please login or sign up below.

Latest articles

Goldman Sachs discloses 3.15% stake in Secure Trust Bank

Goldman Sachs has reported a 3.15% voting interest in Secure Trust Bank following a...

Market Harborough launches rental scheme offering deposit contributions to first-time buyers

Market Harborough Building Society is offering aspiring homeowners the chance to recover 60% of...

Tipton adds discounted rates for expat and limited company landlords

Tipton & Coseley Building Society has expanded its variable rate buy-to-let mortgage range with...

WIS Mortgages sets out five-year adviser growth strategy

WIS Mortgages has announced a five-year growth plan centred on expanding its adviser community...

Nivo targets specialist lenders with AI-powered case management service

Nivo has launched an AI case coordination platform aimed at helping specialist lenders process...

Latest publication

Other news

Goldman Sachs discloses 3.15% stake in Secure Trust Bank

Goldman Sachs has reported a 3.15% voting interest in Secure Trust Bank following a...

Market Harborough launches rental scheme offering deposit contributions to first-time buyers

Market Harborough Building Society is offering aspiring homeowners the chance to recover 60% of...

Tipton adds discounted rates for expat and limited company landlords

Tipton & Coseley Building Society has expanded its variable rate buy-to-let mortgage range with...