Positive changes in region’s housing market
The West Midlands’ housing market showed initial signs of progress last month, as the number of new properties being listed for sale rise.
According to the May 2019 RICS UK Residential Survey, for 12 months, the number of new properties being listed for sale has fallen, and despite remaining in negative territory this month, only -20% of respondents reported a fall in new instructions, up from -71% in April.
Despite the pick-up in the number of new properties being listed for sale, new buyer enquiries are struggling to pick-up and average stock levels remain close to record lows. This does mean that West Midlands respondents are yet to change their opinion for the three month outlook in terms of sales with the indicator remaining flat.
Simon Rubinsohn, RICS chief economist, said: “Some comfort can be drawn from the results of the latest RICS survey as it suggests that the housing market in aggregate may be steadying.
owever much of the anecdotal insight provided by respondents is still quite cautious, reflecting concerns about both the underlying political and economic climate.
“Another significant point made by respondents is that there continues to be considerable emphasis on the need for realistic pricing on the part of vendors, which while not a new story, is indicative of the ongoing challenges in the sector.
“Meanwhile the lettings numbers are a source for some concern with rental expectations beginning to accelerate. It remains to be seen whether the pick-up indicated in our data materialises but the deterioration in the net return for landlords certainly provides reason why it is a possible outcome of recent changes in the tax treatment of buy to let investments.”
