New figures show homes demand drop

DEMAND from prospective home buyers fell in May, in what could be a side-effect of the rising cost of living and higher interest rates, according to surveyors.

The Royal Institution of Chartered Surveyors (Rics) said property professionals reported that new buyer inquiries fell in May, with a net balance of 7% reporting falls rather than rises.

This was a turnaround from April when a balance of 8% reported rises in buyer inquiries rather than falls.

Some professionals put this down to some buyers tightening their belts as the cost-of-living has an effect, and May’s result brings to an end eight months in a row of positive results for new buyer inquiries.

The number of house sales taking place over the next three months is expected to be little changed.

Looking over the next 12 months, expectations point to sales falling, with a net balance of 24% of professionals expecting falls rather than rises.

New instructions to sell homes were also largely flat during May, and there seems to be little respite in terms of a lack of supply in the future,

Rics said.

Given constrained supply, house prices continue to rise.

A net balance of 73% of professionals reported an increase in house prices during May.

All parts of the UK continue to see increasing prices, with growth exceptionally strong in Northern Ireland, Northern England and Wales, Rics said.