The number of new homes coming onto the housing market in Wales rose through July according to the latest Royal Institution of Chartered Surveyors (RICS) Residential Market Survey, but Welsh surveyors are exercising caution about the outlook when it comes to pricing over the coming months.
A net balance of 17% of respondents in Wales reported that new instructions to sell had risen in the most recent survey, which is an improvement on the net balance of -39% that was seen in the survey previous.
However demand remained subdued through July. Surveyors in Wales report that new buyer enquiries fell flat in the most recent survey.
And a similar picture was seen in regards to sales, with Welsh respondents reporting that newly agreed sales also fell broadly flat through July (a net balance of -1%).
Looking at pricing, surveyors in Wales report that house prices fell through July, but at a slower rate than seen previously. A net balance of -4% saw a decline in house prices over the past three months, and whilst in negative territory, is up from the net balance of -17% reported in the June survey.
Looking ahead, surveyors in Wales are hesitant when it comes to pricing, but more optimistic when it comes to sales. On the pricing front, a net balance of -16% of surveyors expect prices to fall over the next three months, whilst a net balance of 17% of respondents anticipate that sales will increase over the next three months.
Commenting on the sales market, David James FRICS of James Dean in Brecon, said: “A good month for sales even though it feels a tougher market.”
In regard to the rental sector, Anthony Filice FRICS, of Kelvin Francis Ltd., in Cardiff added: “A shortage of rental stock, continuing to reduce as private landlords exit the market and this is keeping rents competitively high with the continuing demand.”
Commenting on the UK picture, RICS Chief Economist, Simon Rubinsohn, said: “The housing market remains subdued, and while that is not usual over the summer months, it is clear from the RICS seasonally adjusted data, that the combination of geopolitics, the domestic political climate and the cost of mortgage finance are continuing to weigh on sentiment.
“Significantly, the forward-looking metrics also remain downbeat, which is not the sort of climate likely to encourage housebuilders to step on the gas on existing sites or in land-buying, as highlighted in recent trading statements from developers. Meanwhile, feedback from respondents to the RICS survey is continuing to draw attention to the impact of latest round of regulation on the rental market with the key indicator of new instructions pointing to a further drop in supply.”
