Covid uncertainty sees house sales dip

HOUSE sales have dropped off across most of the UK, ending a seven month run of property growth a new report reveals.

Fresh supplies of potential home buyers and sellers reduced significantly at the start of 2021, despite the housing market remaining open for business, according to the Royal Institution of Chartered Surveyors (RICS)

An overall net balance of 28% of property professionals reported new buyer inquiries falling rather than increasing in January, thanks in large part to a drop in demand.

New property listings were also down, with a net balance of 38% saying that there had been a decline.

Before January new instructions had increased, to a greater or lesser degree, in each report since May 2020.

A net balance of 18% of surveyors observed sales dropping off rather than increasing with the South West, the East Midlands, and Yorkshire and the Humber all returning poor readings on this measure. The feedback remained more resilient in Northern Ireland.

RICS’ report said comments left by its survey contributors suggest “the overall situation around the pandemic at present is deterring wouldbe buyers and vendors”.

A stamp duty holiday deadline is also due to end on March 31, with other reports suggesting that this could lead to a cliff edge in sales.

Despite the gloomy economic outlook, UK house prices have generally been driven up, with a net balance of 50% of participants seeing an increase rather than a decrease in January, the report said.

And in many coastal and rural parts of the Westcountry estate agents report surging demand throughout last year, as lockdown persuaded many city dwellers they would be better off with a house in the country.

But in London a net balance of 9% of surveyors noted a fall in prices, marking the first negative reading for price growth there since July 2020.

Simon Rubinsohn, RICS chief economist, said: “The latest RICS survey suggests that despite attempts to keep the housing market open through the latest lockdown, there has been perhaps an inevitable impact on the level of activity in the sector with both inquiries from potential buyers and new instructions slipping back.”