‘Shortage of property’ means house prices expected to rise
HOUSE prices in Wales are expected to continue rising into the new year, according to the latest figures from the Royal Institution of Chartered Surveyors (RICS).
Both prices and sales are rising relatively strongly, according to the balance of Welsh surveyors, and expectations for the market remain quite upbeat, the RICS Residential Market Survey suggests.
A net balance of 50% of Welsh respondents to the November survey said that house prices rose, while a net balance of 40% said that newly agreed sales increased.
Tony Filice, RICS residential spokesperson for Wales, and director of Kelvin Francis in Cardiff, said: “We are still seeing a shortage of properties coming onto the market, meaning constrained choice for purchasers, and this has been putting upward pressure on prices.
“December will likely be quieter than November as many purchasers hold off until the new year. But we expect the early part of 2018 to follow a similar trajectory to the fourth quarter of this year with good demand and rising prices.”
The main findings of the survey were as follows:
The headline price balance for Wales was plus 50% in the latest survey, meaning that 50% more surveyors said that prices rose in the past three months than those who said they fell.
The price expectations balance, at plus 24%, is one of the highest of all UK regions. The sales expectations balance also remains firmly in positive territory at plus 26%.
The new instructions to sell balance was at plus 49%, suggesting that there has been an increase in the number of new properties coming onto the market – though this is from a low base following successive months of falling supply.
Meanwhile, the newly agreed sales balance increased to plus 40%. New buyer enquiries rose according to a net balance of 40% of respondents.
Roger Davies, of JJ Morris in Cardigan, said: “The Stamp Duty proposal for first time buyers will have little effect in this area where first time houses tend to cost £100,000 to £150,000.”