The number of new homes coming onto the housing market in Wales rose during February, according to the latest Royal Institution of Chartered Surveyors (RICS) Residential Market Survey, but respondents remain cautious about the short-term outlook.
A net balance of 15% of Welsh respondents reported that new instructions to sell were up through the month of February, indicating that more sellers were putting their houses on the market.
However, whilst supply is stronger, demand seems to have dipped. A net balance of -37% of Welsh surveyors reported that new buyer enquiries fell through, which is further into negative territory than the -21% that was seen the month previous.
Subdued demand is leading to fewer sales. A net balance of -36% of respondents in Wales reported that sales declined in the most recent survey, which is the lowest this balance has been since July 2025. And surveyors are cautious on the sales outlook with a net balance of -6% of respondents in Wales anticipating sales will fall over the next three months.
When it comes to pricing, a net balance of 14% of Welsh respondents reported that house prices have risen over the past three months, which is up from the 5% seen in the January survey. However, there is a hesitation when it comes to the short-term outlook, with a net balance of -6% of surveyors in Wales expecting prices to fall over the next three months.
Commenting on the sales market, Anthony Filice of Kelvin Francis in Cardiff said: “Increasing levels of new instructions and serious interest is bringing about early sales, several at the full price or near. There are no effects of the Middle East conflict noted yet, although it is anticipated that interest rates are unlikely to continue their downward trend.”
David James of James Dean in Brecon added: “Lots of viewings but fewer sales compared to February last year.”
Commenting on the UK picture, RICS Head of Market Research & Analytics, Tarrant Parsons, said: “February’s survey highlights renewed volatility in the market. While activity indicators at the start of the year suggested a tentative improvement, the deterioration in the geopolitical backdrop has clearly weighed on confidence. The recent rise in oil and energy prices has also increased the likelihood that mortgage rates will remain higher for longer. As a result, near-term expectations have softened. Although the twelve-month outlook remains positive overall, maintaining that trajectory will depend on the recent spike in inflationary pressures easing in the months ahead.”
