The RICS Residential Market Survey for December highlights that there is lack of supply in the market which is driving increase price expectations.
- Little change in New Instructions since November
- Stronger demand for properties, underpinned by better credit conditions
- Both Sales and Price expectations remain very firm
Sales and price expectations remain firmly positive over the 3 and 12 month time period. Sales expectations net balance for the next 3 Months was +58, meaning 58% more respondents saw increases than decreases. Although slightly down this is still one of the highest levels since 1998. The 12 month net balance expectation however reached new highs. For price expectations, both series moved higher in December with the three month reading reaching its best level since 1999.
New Instructions net balance moved up slightly from +2 to +4, however this is way below the number of new enquiries. The new enquiries balance did actually slip back slightly to +48, however this is still very high both historically and against the Supply.
On BBC News Peter Bolton from RICS highlighted that prices are understandably going to increase based on the pure economics of the lack of supply versus the demand. However he did go on to say that people should not be too worried as they predict next year will be hampered by the upcoming election.
Peter Bolton also pointed out that this increase in growth is not in the traditional London and South East areas, but seen in areas like East Anglia, Scotland and the North.
A selection of Surveyor Comments are:
General activity has tailed off in the last week as the Christmas shopping frenzy has kicked in. But early December has seen a continued improvement all round providing a solid foundation on which the market can build upon in 2014. A very bright outlook.
North West - Richard Powell FRICS, Ryder & Dutton, Oldham, 0161 925 3232, www.ryder-dutton.co.uk
The market was busier than usual in the run up to Christmas. There appears to
be some increased confidence due, in part at least, to the publicity around the Help to Buy scheme
West Midlands - A Champion FRICS, Halls, Worcester, 01905 611066 -
Activity has reduced due to seasonal factors, with few new instructions and enquiries but 2014 looks promising
South East - C Rutland FRICS, Rutland Chartered Surveyors, Southampton, 023 8066 3451,rutland-surveyors.co.uk -
Buyer activity remains good and registers are thin. This will lead to continuing price
rises. There are some examples of 10% price increases over the last 12 months but these are few, with most price rises in our area around 5%.
Wales - Andrew Morgan FRICS, Morgan & Davies, Lampeter, 01570 423623 -
A better period for the market, however, cautious optimism remains and a sustained
recovery will only come about if interest rates remain at current levels.