North West housing market hots up as stock levels and sales rise

Summer is usually a busy time for the North West’s housing market and June proved to be no exception, with house sales and stock levels rising, and interest from new buyers remaining strong, according to latest results of the monthly RICS (Royal Institution of Chartered Surveyors) UK Residential Market Survey.

More than 28% of estate agents in the North West saw a rise in new sales instructions last month, while agents reported an average of 49 homes for sale on their books, up from 47 in May.

This increase in stock encouraged sales levels during June, with 22% of respondents seeing a rise in sales, from 14% in May, and 25% reporting an increase in interest from new buyers.

House prices in the region remain strong, too, with 40% of agents highlighting a rise in house prices during the month of June.

Comparatively, most other areas of the UK – albeit London, the South East and East of England – reported rises in house prices last month, too, including the North East, North West, the Midlands, Scotland and Northern Ireland.

Looking further ahead, 71% of North West agents expect prices to edge higher over the coming year.

Sales expectations are positive for the 12 months ahead, too, with 67% of respondents anticipating that the volume of house sales will increase over the coming year.

Moving to lettings, 70% of respondents reported a rise in tenant demand, while 60% saw an increase in new landlord instructions – despite changes in the tax treatment of buy-to-let investments – and 60% also expect to see rents rise over the coming three months.

Average five-year projections imply rental values are expected to rise by 3.6% per annum, surpassing house prices, which are seen rising by 2.7% on the same basis.

John Halman, of Gascoigne Halman in Wilmslow, Cheshire, said: “The first month of the tenancy fee ban has brought activity to the market. But rents are being pushed up as a result of the fee ban.”

Simon Rubinsohn, RICS chief economist, said: “The latest data provides further evidence of the sales market settling down but I don’t get the impression from the insight provided by contributors that this is fuelling hope of a significantly more active housing market going forward.

“Many of the factors that have provided a challenge during the first half of the year remain unresolved.

“Meanwhile, feedback on the lettings market continues to highlight the impact of the policy changes announced in recent years.

“Build to Rent should, in time, help take up some of the slack in parts of the country, but the RICS indicators capturing rent expectations suggests there is no expectation this will be the case anytime soon.”