Doubt among new buyers to result in sales decrease for Yorkshire housing market
Yorkshire and the Humber saw the demand for new buyers fall in September as more surveyors expect sales levels to decline over the next 12 months, according to the September 2018 RICS UK Residential Market Survey.
Looking at new buyer demand in the region, only 2% of respondents saw enquiries from potential home buyers increase during the month of September.
In addition, the number of newly agreed sales fell last month and the volume of new sales instructions (homes coming on to the market) declined for the third consecutive month.
21% of respondents also said they are expecting sales to fall over the coming 12 months as average stock levels on estate agents’ books remain close to record low levels.
Overall, Yorkshire and the Humber’s respondents to the survey continue to highlight a mixture of affordability constraints, a lack of stock, economic uncertainty and interest rate rises to be holding back activity.
As for house prices, 38% of respondents in the region saw prices rise during the month of September (up from 24% the previous month).
James Brown MRICS of Norman F Brown said: “The seasonal slow down will start to kick in soon and along with Brexit, uncertainty does not paint a good picture for the housing market for the remainder of the year.”
In Yorkshire and Humber’s lettings market, tenant demand fell with just 5% of respondents seeing a rise in enquiries from potential tenants. Landlord instructions to let also remain in decline, with 42% of agents reporting a fall in new rental property coming onto the market.
Simon Rubinsohn, RICS chief economist, added: “There are a number of themes running through the comments of respondents this month but uncertainty relating to Brexit negotiations is at the very top of the list followed by references to the confidential remarks made by the Bank of England Governor to the cabinet. All of this is not surprisingly taking its toll on the sales market in all parts of the country.
“That said, the recent announcement from the Prime Minister that the Housing Revenue Account borrowing cap will be abolished is a bold move which over the time could help address some of the very real challenges facing those looking to buy or rent property.
“There is no silver bullet that will immediately resolve this problem but encouraging new entrants to deliver affordable homes is certainly part of the answer.”
