Yorkshire housing market remains stagnant amid Brexit concerns

The housing market in Yorkshire and the Humber weakened as the year ended, with political uncertainty contributing to a continuing lack of sales and stock, according to the December 2018 RICS Residential Market Survey.

Sales volumes and buyer enquiries continued to fall during the month of December. 37% of agents in the region also anticipate a fall in sales over the coming three months, and only 4% of respondents expect sales volumes to rise over the coming 12 months.

Sales expectations are now either flat or negative across all parts of the UK. Evidence from the survey suggests this is linked to the lack of clarity around what form of departure the UK will make from the EU in March.

In terms of prices, 8% of respondents in Yorkshire and the Humber reported a rise in house prices last month, but looking ahead, 23% of contributors in the region are expecting to see house prices rise over the next year.

The ongoing lack of supply is contributing to the more positive outlook for prices, with stock levels on estate agents books in Yorkshire and the Humber remaining at a record low, currently standing at an average of just 34 properties per branch.

David Moor of David Moor Chartered Surveyors in Harrogate, said: “Despite the Brexit concerns expressed by many agents, my clients are paying full market price and, in some cases, a premium to purchase a property they want in their desired location. A lack of stock appears to be underpinning the market for the moment.”

Yorkshire and Humber’s lettings market is also experience supply issues, with 39% of contributors reporting a decline in landlord instructions, marking the fourteenth consecutive month that landlord instructions have fallen.

Alex McNeil of Bramleys in Huddersfield said: “There’s been a recent increase in reluctant landlords selling which is probably due to changes in the tax regime and a feeling that there is likely to be limited capital growth in the short term. Rent levels are maintaining due to the shortage of supply.”

Simon Rubinsohn, RICS Chief Economist, added: “It is hardly a surprise with ongoing uncertainty about the path to Brexit dominating the news agenda, that even allowing for the normal patterns around the Christmas holidays, buyer interest in purchasing property in December was subdued.

“This is also very clearly reflected in a worsening trend in near term sales expectations. Looking a little further out, there is some comfort provided by the suggestion that transactions nationally should stabilise as some of the fog lifts, but that moment feels a way off for many respondents to the survey.

“Meanwhile it is hard to see developers stepping up the supply pipeline in this environment. Getting to the government’s 300,000 building target was never going to be easy but pushing up to anywhere near this figure will require significantly greater input from other delivery channels including local authorities taking advantage of their new-found freedom.”