Property Market set for strong price trend as instructions stagnate

The Royal Institute of Chartered Professionals November 2013 Residential Market Survey further confirms the recent upward trend in house prices and house sales

Key facts:

  • Stock levels have been falling at the same time as sales levels have risen, leading to a strengthening of the property market
  • House price expectations from the surveyors is firm
  • Strength in the housing market seen outside of the London market

The RICS house price balance is a figure that represents the average view of rising or falling prices. If it is positive it means that more respondents have seen prices rises than falls.

The headline price balance for England and Wales is +58, which means that 58% more respondents have seen price increases as opposed to price falls.

Price increases are rising due to the strengthening of the property market, with stock levels falling and sales rising. This can be seen with a rise in the headline sales to stock ration to 34.5%.

The increase in sales levels is reflected in the new instructions and buyer enquiries, with new instructions almost grinding to a halt against the back drop of buyer enquiries almost reaching the highest on record.

Rental Market

With the housing marketing strengthening and the various Government initiatives, the rental market has slowed with tenant demand and new landlord instructions across the nation having pretty much ground to  a halt.

This has however not yet fed through into the medium or long term rent expectations, which are not seeing any increases but remaining steady. Surveyors expect to see rent increases of 2% over the next year and 4% per year over the next 5 years.

Regional perspective

RICS-Survey-Oct-RegionsThe overall headline price balance is for England and Wales and will be distorted by the strong London market, which has seen a balance of +99, meaning only 1% of respondents saw price falls in the capital.

Despite this though the regions are performing extremely well, with 8 out of 10 regions seeing price balances of greater than +30.

Leading the regions outside of London is the South East with a balance of nearly +80, followed by the North West with a balance of about +75.

At the bottom of the regions is the North with a balance just short of +20 then the next region is Wales with a balance of nearly +25.

Surveyors Comments

Andrew C H Holmes BSc (Hons) Dip Surv MRICS, Thomson Hayton Winkley Estate Agents, South Lakeland, 01539 815700, –
Yet another excellent month for sales and new instructions, there is a much more positive
feel to the market with both buyers and sellers being realistic and motivated

Toby Milbank MLE MRICS, Strutt & Parker, Harrogate, 01423 561274, –
More sales being generated in the Yorkshire market as sellers finally sell their own
houses and are able to move on. Some deals short lived as chains falling apart. Lower
end of the market is still the strongest.

Kirsty Keeton MRICS, Richard Watkinson & Partners, Newark, 01636 611811, –
Sales in October & November have been extremely buoyant – 25% more than 2012.
Instructions held up well in October, but are now dwindling rapidly. The Help to
Buy scheme appears to be assisting the market. Seasonal effects are only just beginning to show late in November.

Anthony Webb FRICS, Trenchard Arlidge, Cobham, Surrey, 01932 864242, –
November 2013 has been the most successful month for 5 years since the recession took
hold. By successful, we mean in relation to the number of instructions and sales with
properties receiving multiple offers and sold by tender achieving prices beyond previous records

David J Dark FRICS, Seldons Estate Agents, Bideford, 01237477997, – Market very busy. Demand is outstripping supply in some styles and price ranges particularly first time buyers and investors. If current trend continues prices are likely to

Kevin Ryan FRICS, Carter Jonas LLP, Mayfair, Westminster, 020 7518 3213, – A steady market with realistically priced properties selling and unrealistically priced ones
sticking. Purchasers in the higher price ranges concerned about the proposals for punitive taxes on such properties.


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