Expectations for the housing market in Wales remain positive despite a slower market in November as uncertainly around the UK Budget impacted on confidence, according to the latest Royal Institution of Chartered Surveyors (RICS) Residential Market Survey.
A net balance of -23% of survey respondents said that there was a fall in new instructions to sell in November, down from the 6% seen in the October survey. It was a similar story with new buyer enquiries with the net balance also moving from positive into negative territory in November.
There was also a marginal slowdown in sales last month, with net balance of 12% of surveyors in Wales reporting a rise in newly agreed sales which was down from 17% seen in October’s survey.
However, looking ahead, Welsh respondents remain optimistic about both sales activity and prices with the UK Budget out of the way and many buyers and sellers looking to the New year.
A net balance of 32% of surveyor respondents in Wales anticipate that home sales will rise over the next three months. And net balance of 14% of respondents in Wales expect prices to be higher in three months’ time.
This comes after prices continued to edge up according to the latest report, with a net balance of 47% of respondents pointing to a rise compared to 56% in the survey previous.
Commenting on the sales market, Anthony Filice, FRICS of Kelvin Francis in Cardiff said: “There was a lower frequency of viewings last month, with only those who are serious buyers viewing, resulting in satisfactory numbers of sales being agreed. Many vendors are waiting to list in January. With competitive mortgage rates, first time buyers are seeking to buy instead of renting.”
On the rental side of the market, David James, FRICS of James Dean in Brecon noted that there is “still a shortage of rental properties”.
Commenting on the UK picture, Simon Rubinsohn, RICS chief economist said: “The housing market has been struggling for momentum for several months, and the recent Budget announcements are unlikely to materially shift that picture. The ending of Budget related uncertainty is welcome, but the fundamental challenges of affordability and elevated borrowing costs will in all probability keep activity subdued in the near term. That said, the twelve-month outlook has brightened somewhat, likely reflecting a growing sense that the Bank of England may have a little more scope to reduce interest rates than seemed plausible only a short while ago.
“Meanwhile in the lettings market, although tenant demand does appear to be softening the lack of stock is keeping rental expectations elevated and the additional tax levied on landlords in the Budget will likely exacerbate this trend.”
