More buyers and sellers were active in the Welsh housing market last month despite some uncertainty relating to the upcoming UK Budget, according to the latest Royal Institution of Chartered Surveyors (RICS) Residential Market Survey.
A net balance of +7% of surveyor respondents said that there were more new listings in September compared to October, whilst a net balance of +40% said that there were more new buyer enquiries. This translated into more sales too, according to a net balance of +15% of respondents.
Prices were also said to have increased, with a net balance of +56% of respondents saying that prices were higher in the latest report. And the outlook has improved as well according to surveyors. A net balance of +17% of respondents in Wales expect prices to be higher in three months’ time and a net balance of +45% expects sales volumes to be higher.
Regarding the rental market, Welsh surveyors report that tenant demand was marginally lower last month (a net balance of -6% of respondents) whilst landlord instructions were reported to have risen (a net balance of +11%). Regarding rents, surveyors in Wales expect these to edge up slightly over the next three months.
Commenting on the sales market, Anthony Filice, FRICS of Kelvin Francis in Cardiff said that there was “a steady flow of new instructions to sell and reasonable confidence amongst buyers at prices up to £800,000; but there is nervousness above that due to the uncertainty of the impending budget and the market over £1,000,000 is sluggish”.
Commenting on the UK picture, RICS Head of Market Research & Analytics, Tarrant Parsons, said: “The housing market continued to show weakness in October, with activity levels drifting lower amid a lack of buyer confidence. Ongoing uncertainty surrounding potential measures in the upcoming Budget are thought to be compounding the cautious mood among both buyers and sellers, while above target inflation and rising unemployment are also a negative for the market.
“The coming months will be crucial in assessing how the market responds to the Budget, which could prove a turning point in either direction. Greater clarity over housing taxation policy may help stabilise sentiment, but if the measures announced add further pressure to activity, they risk deepening the current slowdown.”
