Brexit and a general election adds to slow-down of region’s housing market
The monthly RICS UK Residential Market Survey continues to show a subdued housing sales market in the West Midlands, with a lack of new buyer enquiries, agreed sales and new supply coming on to the market.
During the month of October 37% of agents in the West Midlands reported a decline in new buyer enquiries (up from 29% in September). Alongside this, 31% of respondents reported a fall in newly agreed sales last month. Looking at the different areas of the UK, sales dipped across virtually all parts apart from Northern Ireland, where contributors noted a marginal increase.
Looking ahead, more agents in the West Midlands do not expect to see sales increase over the coming three months, but 19% expect to see sales levels rise over the coming 12-months.
As the UK continues to struggle with housing supply, 53% of respondents noted a fall in new instructions to sell in the West Midlands last month; a longstanding trend. This decline in sales stock was reflected across the whole of the UK. In addition, 49%, of survey participants reported an annual decline in the level of market appraisals undertaken which is the most negative since the series began in 2017.
Simon Rubinsohn, RICS chief economist, said: “The latest survey feedback continues to suggest that both buyer and seller activity remains in a holding pattern, hampered by political and economic uncertainty. Given the upcoming general election next month, it appears unlikely that these trends will pick-up to any meaningful extent over the remainder of this year.
“The picture remains very different on the lettings side however, with tenant demand gathering momentum over recent months. This is running against an increasingly tight supply backdrop for rental properties and seems set to squeeze the pace of rental growth higher going forward.”
Tamara Hooper, policy manager at RICS adds: “Persistent government meddling in the private rented sector (PRS) has dampened landlords’ appetites to invest and expand their portfolios, with many consolidating their assets, or leaving the sector altogether. In addition, the regular changes to the PRS regime has decreased stability and standards for tenants.
“The Government needs to stop tinkering with PRS activity – through misguided eviction processes, taxation and fees – and help provide a careful balance between landlords and tenants’ rights. This will encourage more landlords back to the market as well as ensure that tenants, including those who are most vulnerable, are not at a disadvantage in being able to find a suitable and affordable home to rent.”
