North West housing market enjoys healthy start to year
The housing market in the North West has seen a pick up in sales since the start of the new year – according to a survey.
The January 2020 RICS UK Residential Market Survey revealed that both the number of agreed sales and new homes being listed for sale improving over the month.
Across the region, the number of agreed sales rose for a second month in a row, with +21% of respondents reporting an increase.
In addition, the number of homes being listed for sale increased in January, as a net balance +7% of respondents reported a rise, up from +3% in December.
The number of new buyers looking for a home also rose in January, albeit to a lesser degree than in December.
Looking ahead, respondents to the survey expect this refreshed optimism to continue with sales anticipated to rise across the North West, both in the near term and for the year to come.
The up-turn in activity is also reflected in the level of market appraisals undertaken over the month, which was higher than a year ago, marking the first positive reading for this series since it was introduced in 2017.
Despite, the improvement it follows a sustained period of falling supply, meaning average stock levels remain relatively low at an average of 54 properties per branch.
As sales activity improves, house price pressures appear to be building. The North West’s price net balance moved up to +27% in January, for the third successive month.
At the national level, the survey pointed to house price growth for the first time since July 18, being underpinned by growth in London and the South East. Going forward, respondents to the survey expect prices to rise both in the coming three months and over the year ahead.
John Williams FRICS, of Brennan Ayre O’Neill LLP in Wirral, commented: “A positive start to the year with all activity indicators showing an increase over the previous year.”
In the lettings market, demand for rental properties rose in the three months to January (seasonally adjusted quarterly series), with a net balance of +6% of respondents citing an increase.
This quarter, however, a net balance of 23% of respondents reported an increase in the number of new rental properties being listed. There is a sustained mismatch between rising demand and lack of supply in the North West and as such rents are expected to rise in the next three months, with respondents anticipating rents to rise by a little over 2% in the year ahead.
Simon Rubinsohn, RICS Chief Economist, said: “The latest survey results point to a continued improvement in market sentiment over the month, building on a noticeable pick-up in the immediate aftermath of the General Election.
“The rise in new sales instructions coming onto the market is a noteworthy and much needed development, given the lack of fresh listings over the past few years had pushed stock levels to record lows. It remains to be seen how long this newfound market momentum is sustained for, and political uncertainty may resurface towards the end of the year. But, at this point in time, contributors are optimistic regarding the outlook for activity over the next twelve months.”
