North West housing market remains subdued
Activity in the North West’s housing market remained subdued during the month of February despite stock levels on estate agents’ books revealed as higher than most other UK regions.
According to the latest monthly Royal Institution of Chartered Surveyors (RICS) UK Residential Market Survey, new buyer enquiries and agreed-sales continued to drift lower in February along with new instructions.
This lack of homes to purchase is a long-standing problem, says RICS, with the survey revealing new instructions fell last month to their lowest reading since October 2017.
However, the average number of homes for sale (per branch) on the books of agents in the North West was 51 last month, which is healthier than stock levels per branch in most other UK regions. Only agents in Wales had a higher amount during the month of February (89), followed by agents in the North East with 64.
Looking at prices in the North West; 35% more respondents reported a rise in prices during the month of February (down from a net balance of 46% in January). Comparatively, feedback on prices remains negative to a greater or lesser degree in London, East Anglia, the South East and the North East.
North West respondents are also optimistic about the longer five-year indicator for prices, which are expected to increase at a slightly slower pace than rents, although, both point to growth of approximately 15% at the end of the five-year period.
Simon Rubinsohn, RICS chief economist, said: “The consultation announced earlier this week on housing delivery put the onus squarely on developers and planning departments to up their game to lift the supply pipeline. But the feedback to the latest RICS Residential Market Survey casts some doubt as to whether this will be sufficient to address the challenge.
“Significantly, the longer term national house price indicator has begun to creep upwards once again in recent months despite the current somewhat mixed climate, and the private rent series also remains firm, in both cases pointing to increases of at least fifteen percent over the next five years.
“Meanwhile, the divergent regional picture is becoming increasingly pronounced with key RICS indicators across huge swathes of the country still showing considerable resilience.”
