Yorkshire housing market sees drop in prices, demand and supply amid political uncertainty

Yorkshire and the Humber has seen house prices fall last month due to a decline in interest from new buyers, according to the latest RICS UK Residential Market Survey.  

Over the coming 12 months, however, house prices are expected to rise again due to the ongoing lack of sales stock coming on to the region’s housing market.

During the month of October, 21% more agents in Yorkshire and the Humber reported a rise in house prices (down from 30% in September).

On a national level, house prices were reported as falling or flat in other UK regions last month including London, South East, East of England and Wales, but prices remained strong in the East Midlands, Scotland and Northern Ireland.

The weaker trend in prices in some regions is being driven by the lack of demand from new buyers, which the survey said is “in part a result of heightened political uncertainty, ongoing affordability pressures, a modest upward move in interest rates and a lack of fresh stock coming onto the market.”

In October, agents in Yorkshire and the Humber also reported a fall in buyer interest for the second consecutive month.

However, 27% of respondents in Yorkshire and the Humber are confident house prices will rise over the coming 12 months, as the prevailing lack of housing stock for sale – of all tenures – in the region is predicted to push prices higher.

Nearly all UK regions saw a further decline in new instructions last month (homes coming onto the sales market) as average stock remains close to an all-time low. Furthermore, there appears little chance of any meaningful turnaround, as a net balance of 30% of respondents reported the number of appraisals to be down on year on year basis.

Mr Hunter of Grice and Hunter in Doncaster said: “Mid-September to the end of October did not see any seasonal upturn and the level of new instructions/requests for valuations is at an all-time low. Unfortunately, we will now be in limbo until at least mid-January.”

In the lettings market, the quarterly data revealed tenant demand fell during the three months to October. Alongside this, landlord instructions also declined, and on the back of this, only 9% of respondents expect to see rents rise over the coming months.

Alex McNeil of Bramleys in Huddersfield said: “The lettings market continues to be stable with low levels of rental growth. There is a shortage of three and four bed houses available to rent, and some reluctant landlords starting to consider whether now is the time to sell.”

Simon Rubinsohn, RICS Chief Economist, added: “Uncertainty about the economic outlook on the back of the never-ending Brexit negotiations appears a key drag on sentiment according to respondents to the survey.

“Meanwhile, the announcement of the extension of Help to Buy, albeit in a narrower format, should continue to underpin the new build market in the near term. Whether it, alongside other measures recently announced including the lifting of the HRA cap, is sufficient to drive housing starts up to the government’s 300,000 target over the coming years remains to be seen.”