The forecast for the next year for the UK residential property market sales is optimistic as more activities have been recorded in Scotland, Northern Ireland, and the North East of England.
According to the study carried out by the Royal Institution of Chartered Surveyors, the surveyors have maintained an optimistic outlook even though agreed transactions fell at a national level in December with negative sales recorded over the remaining part of the year.
There is no likelihood of an abrupt improvement in sales expectations on a national level remaining stagnant for the next three months. Nevertheless, there are definite signs that prices will increase within the year across all regions as London recorded its first positive reading last year June.
There was a reduced overall buyer interest in December as sales, and new instructions fell. The price came close to stability in November as about 15% of the respondents observed a shrink in demand in contrast to a surge in December.
According to the Rics survey, the effect of the Government’s decision to eliminate stamp duty for first-time purchasers has not been felt. 86% of the respondents confirmed that there is no response from the first-time buyers with respect to the policy. The survey also pointed out that the time of year could be partly responsible.
When the respondents were asked about the possible effect on the market in the next few months, 66% of these persons reiterated that it would have insignificant effect while 12% confirmed that it would result in higher overall activity. 48% of the respondents in London said the impact would not be much, but the other respondents said the changes would enhance the entire market activity.
If you take a look at the supply rate on a national scale, new instructions have shown a decline running into twenty-three months. Various comments from the respondents have expressed fears on the adverse effect it will have on the market. A significant improvement is witnessed as 23% of the contributors noted that there are higher appraisals in December in contrast with 15% that responded in November.
If you take a careful look at the price analysis, the headline balance has increased to +8% in December, an improvement from the November statistics which read zero. In the next few months, there will be a marginal increase in prices nationally. The three-month price outlook series remains negative nationally which shows a lack of conviction with respect to the near-term forecast.
The lettings market witnessed a continuous decline in tenant demand during December. However, the new landlord instructions reduced at a marginally swifter rate. Rental growth expectations were unassumingly confident for the next three months at a net balance as it moved from +4% to +9%.
According to Simon Rubinsohn, RICS chief economist confirmed that the initial feedback from the UK residential property market does not indicate that the change in the stamp duty regime proposed in the budget will not have a significant effect on activity.
There have been affordability concerns in the UK, but their effects have been visible in some regions of the country than other parts.