There was a rise in the number of new buyers in the Welsh housing market in August according to the latest Royal Institution of Chartered Surveyors (RICS) Residential Market Survey, and surveyors appear more optimistic on the sales and pricing outlook.
A net balance of 44% of respondents in Wales report that there was a rise in new buyer enquires in the most recent survey which is the highest this balance has been in two years.
On the supply side, a net balance of 22% of respondents in Wales reported that new instructions to sell had risen, which is up slightly from the net balance of 19% that was seen in the July report.
With upward trajectories in both demand and supply, Welsh respondents report that newly agreed sales also rose through August with a net balance of 50% of respondents pointing to an increase in the most recent report. And this upward momentum is expected to continue as a net balance of 43% of survey respondents in Wales anticipate that sales will rise over the next three months.
Looking at pricing, respondents in Wales on balance report that house prices rose in the August report. A net balance of 10% of respondents reported a rise in house prices, which is up from the results of the July report where this balance was reported to have fallen flat. And looking ahead surveyors are optimistic regarding prices, with a net balance of 9% of respondents in Wales expecting house prices to rise over the next three months.
Commenting on the sales market, Anthony Filice FRICS of Kelvin Francis Ltd. in Cardiff said: “Against all expectations, the market in August was very busy. There was a steady number of new instructions, and this is expected to rise further in September. Confidence amongst buyers is also holding up surprisingly well.”
On the rental market Anthony adds: “It is a steady market, but short of available properties to rent, which continues to diminish, bringing about an increase in rental values.”
Commenting on the UK picture, RICS Head of Market Research and Analysis, Tarrant Parsons, said: “August’s results show a market that is gradually finding its footing, with key activity indicators having become progressively less negative over recent months. That said, any potential recovery remains fragile and faces two significant near-term tests.
“The Bank of England’s increasingly hawkish tone, on the back of renewed volatility in global energy markets, is a reminder that the borrowing cost outlook could yet deteriorate further. And with the October Budget approaching, speculation over potential changes to property taxation is adding another source of caution for both buyers and sellers. As such, headwinds over the shorter term remain pronounced, even though recent market trends have appeared more stable.”
