‘Brexit uncertainty’ sees housing market suffer
UNCERTAINTY over Brexit is prompting home buyers and sellers to sit tight in increasing numbers, with fewer people interested in moving and properties now typically taking around four months to sell, according to surveyors.
The number of people looking for a new home fell in November, with a net balance of 21 per cent of surveyors reporting house hunter numbers falling rather than rising, the Royal Institution of Chartered Surveyors (Rics) found.
Many comments attributed the drop-off in buyer numbers to Brexit uncertainty as well as a continued limited choice of properties for sale, Rics said.
It now takes 19 weeks on average for a property to sell after initially being listed, the longest duration seen since this aspect of the survey started in February 2017 and “another sign of challenges in the sales market”, Rics said.
House prices are slipping back, despite the limited number of homes for buyers to choose from.
But Rics said the regional picture remains varied, with house prices falling most notably in London, South East and East Anglia while house prices in the South West, East Midlands and North East are broadly flat.
House price increases are still being seen in Northern Ireland, Scotland, the West Midlands, Wales, Yorkshire and the Humber and the North West. In general, the number of new properties being listed for sale fell for the fifth month in a row in November.
A net balance of 24 per cent of surveyors reported seeing a fall rather than an increase in new properties coming on the market, marking the fastest pace of decline seen in more than two years.
The lack of new homes up for sale is impacting estate agents’ average stock levels. Estate agents now have around 42 homes for sale per branch on average.
Rics said that “with little choice for new buyers and fewer people interested in moving”, the number of agreed sales taking place also fell in November, with a net balance of 15 per cent of surveyors seeing sales falling rather than increasing.
Simon Rubinsohn, Rics chief economist, said: “It is evident from the feedback to the latest Rics survey that the ongoing uncertainties surrounding how the Brexit process plays out is taking its toll on the housing market. Indeed, I can’t recall a previous survey when a single issue has been highlighted by quite so many contributors.
“Caution is visible among both buyers and vendors and where deals are being done, they are taking longer to get over the line.”