House-price growth ‘strongest in Wales’
House price growth in Wales is forecast to be stronger than elsewhere in the UK according to market insiders.
The Royal Institution of Chartered Surveyors (Rics) said activity through spring had been “strong” with signs of bouyant activity in the market for the summer.
According to Rics, across the UK the General Election does appear to have prompted more home buyers and sellers to adopt a “wait-and-see” approach, as the number of new buyer inquiries, the volume of fresh property coming to market and the number of sales agreed all fell in May.
However, in Wales the body reported that viewing activity was strong.
RICS residential spokesman for Wales, and director of Kelvin Francis, Cardiff, Tony Filice, FRICS, says: “In our experience, viewing activity has been particularly strong in the middle and lower price levels, while the upper end of the market has been slowing, perhaps linked to the General Election.
“Encouragingly, in addition to increased activity, we are also seeing an indication of rising numbers of new instructions to sell, which is welcome in a market that has experienced an ongoing lack of supply.”
Andrew Morgan, FRICS, of Morgan & Davies in Lampeter, said: “It was a very busy spring.”
Paul Lucas, FRICS, R.K.Lucas & Son in Haverfordwest, said: “Activity in the property market remains strong.”
A net balance of +28% of Welsh surveyors expects prices to increase in the three months ahead, which compares to a net balance of -1% for the UK as a whole.
Welsh surveyors are also more optimistic than elsewhere about the prospects for growth in sales activity over the next three months, with a net balance of +39% expecting the number of transactions to increase. This compares to +5% for the UK as a whole.
Property stock levels remain at alltime lows, Rics said, with an average of 43 unsold homes on estate agents’ books. It said a “sheer lack of supply continues to support prices for the time being”.
Over the next 12 months, surveyors expect house sales to pick up, with a net balance of 26% expecting sales activity to increase rather than decrease.
House prices generally continued on an upward march in May, with a net balance of 17% of surveyors reporting increases rather than decreases, down from a balance of 22% the previous month.
May’s house-price reading is the weakest since August 2016, but it still indicates modest house-price gains, Rics said.
Simon Rubinsohn, chief economist at Rics, said: “Although the latest survey suggests that uncertainty related to the General Election may have contributed to what appears to have been a disappointing level of transactions in the housing market over the spring, perhaps the most ominous signal emanating from the data released today is that contributors still expect house prices to increase at a faster pace than wages over the medium term.”