Surveyors in Wales noted a rise in home sales through the first month of the year, according to the latest Royal Institution of Chartered Surveyors (RICS) Residential Market Survey, but are more cautious about the short-term outlook.
A net balance of 19% of respondents in Wales reported that sales increased through the month of January, which is up from the 8% seen in the December survey.
The net balance of respondents (5%) also reported that house prices rose, which is up from the -3% seen in the previous survey. And the net balance for Wales is also higher than the average UK balance of -10%.
But Welsh surveyors appear more cautious about the outlook. A net balance of -10% of Welsh respondents are expecting sales to fall over the next three months. And on the pricing outlook, surveyors are less optimistic than seen previously. A net balance of 5% of respondents in Wales anticipate that house prices will rise over the next three months, which is down from the 20% seen in the survey previous.
Subdued enquiries from potential buyers and instructions from sellers are the key reason for this cautious outlook. Looking at demand, a net balance of -17% of Welsh surveyors reported that new buyer enquiries fell through the month of January. New instructions to sell were reported to have fallen broadly flat.
Commenting on the sales market, Anthony Filice of Kelvin Francis in Cardiff said though that the December interest rate reduction has helped. He continued: “Vendors are amenable to considering offers from buyers able to proceed. Properties over ?1,000,000 are slower at present, but this should improve later.”
Regarding the rental market, he added: “There are an increasing number of properties available for rental, and tenancies are being agreed promptly at levels below ?1000 per calendar month. Above ?1500 pcm, tenancies are a bit slower to secure, however this should improve as the year progresses.”
Commenting on the UK picture, RICS Chief Economist, Simon Rubinsohn, said: “There are early signs that market conditions may be improving after a challenging period, although activity levels are still subdued, meaning any recovery is likely to be gradual. While the strengthening twelve-month outlook is encouraging, near-term expectations remain relatively soft, reflecting ongoing economic uncertainty. Whether this tentative improvement develops into sustained momentum will depend heavily on the trajectory of mortgage rates and broader macro confidence over the coming months.”
