House Prices Set To Continue Rising As Supply Shrinks

A lack of available properties is helping to push up house prices, surveyors say. As a result, a majority of Royal Institution of Chartered Surveyors (RICS) members think prices will continue to rise over the next year. The shrinking supply meant the number of new properties coming to the market fell by a third in June. But with no let-up in demand, all parts of the UK continued to report robust increases in house prices, RICS said. Read more on the BBC website.

House prices set to continue rising as supply shrinks - BBC News

Housebuilders’ Costs On The Rise

 Housebuilders’ costs increased by 1.7% in 1Q 2021 and by 3.6% between 1Q 2020 and 1Q 2021 according to the BCIS Private Housing Construction Price Index (PHCPI). Housing construction output grew by 2.7% in 1Q2021 compared with the 4Q 2020 but fell by 1.2% on the annual basis. Majority (94%) of respondents to the survey reported increases in costs. Of those, 44% stated increases in cost of materials, 37% indicated changes in both labour and material costs, 13% stated sub-contractors’ costs while 6.0% indicated labour costs. Insulation, aggregates, timber and timber products, steel as well as shortages of building materials, higher costs of transport, energy and labour costs/availability remain among the key cost pressures mentioned by respondents. Read more on the RICS website.

https://www.rics.org/uk/products/data-products/insights/private-housebuilders-costs-continued-to-increase-in-1q-2021/

A Perfect Storm For FTBs As Listings Dwindle And Prices Continue To Rise

Agreed sales and average house prices have continued to rise ahead of the stamp duty deadline as the number of new listings entering the market fell for the second month in a row - a perfect storm for those attempting to get their first foot on the property ladder. According to the latest data and market analysis from RICS, during May, the number of people looking to buy a new home continued to rise, with 32% more respondents noting an increase from prospective buyers. Read more on the Property Reporter website.

https://www.propertyreporter.co.uk/property/a-perfect-storm-for-ftbs-as-listings-dwindle-and-prices-continue-to-rise.html 

Stamp Duty Holiday Helps Drive Up UK Property Prices

UK property prices are set to continue to rise after the gap between demand for homes and supply grew to its widest level since 2013, surveyors have reported. The latest monthly snapshot of the market from the Royal Institution of Chartered Surveyors showed new listings had failed to keep up with the number of interested buyers in May, driving up prices across the UK. The group said that upwards pressure on prices had intensified for the fourth month running, with the stamp duty holiday in parts of the country one of the factors driving demand. Read more on the Guardian website.

https://www.theguardian.com/money/2021/jun/10/stamp-duty-holiday-helps-drive-up-uk-property-prices 

Tax Break Extension Revives Housing Market Boom

The unexpected extension of a tax break for property purchases in Rishi Sunak’s budget last month has revived a fading boom in housing market activity, a survey shows. The Royal Institution of Chartered Surveyors said its monthly gauge of house prices - based on the reports of surveyors across the country - rose in March to +59 from +52 in February. Other measures of Britain’s housing market have suggested that activity in the housing market was fading before the planned expiry of a temporary cut to property purchase tax, known as stamp duty, at the end of March. Read more on the Reuters website.

https://www.reuters.com/article/uk-britain-economy-houseprices/tax-break-extension-revives-uk-housing-market-boom-rics-idUSKBN2BU3K4

Housing Market Turned Negative In January

Housing market activity moved decisively into decline last month due to concerns over the pandemic and the imminent end of the stamp duty holiday, according to the latest figures from the RICS. The institution’s monthly housing market survey showed that its indices measuring demand, listings and lettings all fell into clear decline in January following seven months of strong growth since the initial easing of the spring lockdown. It said a balance of -28% of surveyors saw a decline in buyer enquiries over the month, with the listings index falling to -38%, and the sales index falling to -18%, denoting a drop-off in agreed sales. Each of these had registered growth in December. Read more on the Housing Today website.

https://www.housingtoday.co.uk/news/housing-market-turned-negative-in-january-says-rics/5110336.article

Almost 450,000 Homeowners Set To Benefit From New EWS1 Agreement

Owners of flats in buildings without cladding will no longer need an EWS1 form to sell or re-mortgage their property, following a new agreement reached between the government and the Royal Institution of Chartered Surveyors (RICS). Regulations introduced to improve fire safety following the Grenfell fire had inadvertently left flat owners trapped in near-unsellable homes.After the Grenfell tragedy in June 2017, the rules implemented meant that mortgages for flats in buildings over 18m tall would only be approved if they had passed an External Wall Fire Review (EWS1) survey.However, the government and RICS have agreed that buildings without cladding do not need an EWS1 form. Read more on the Property Industry Eye website.

https://propertyindustryeye.com/almost-450000-homeowners-set-to-benefit-from-new-ews1-agreement/

UK Housing Boom Gathers Pace, But Fears Of A Bust Grow Too

The rebound in Britain’s housing market gathered more pace in July with a measure of property prices turning positive for the first time since the coronavirus crisis engulfed the country. But the Royal Institution of Chartered Surveyors (RICS) said its members were worried the mini-boom could turn into a bust once the government’s jobs subsidy programme closes and a tax cut expires at the end of March. The RICS monthly house price balance rose to +12 from June’s -13, above all forecasts. RICS said surveyors were more cautious about the outlook in the medium term. Read more on the Reuters website.

https://uk.reuters.com/article/uk-britain-economy-houseprices/uk-housing-boom-gathers-pace-but-fears-of-a-bust-grow-too-rics-idUKKCN25830Y 

Covid-19 Predicted To Cause Leap In Demand For UK Homes With Gardens

Britain’s housing market remains depressed despite a pick-up in enquiries from people looking to buy, but estate agents are expecting a sharp increase in demand for homes with gardens over the next two years because of the Covid-19 pandemic. Despite estate agents being allowed to reopen in England on 13 May following an eight-week shutdown, sales and house prices continued to fall across the UK in May, according to a monthly survey of surveyors and estate agents from the Royal Institution of Chartered Surveyors (Rics). Read more on the Guardian website.

https://www.theguardian.com/business/2020/jun/11/covid-19-predicted-to-cause-leap-in-demand-for-uk-homes-with-gardens

House Sales Fall At “Fastest Ever Rate”

Estate agents’ sales expectations have fallen to their lowest ever level according to the monthly housing market survey undertaken by the RICS. The body said agents’ expectations of sales growth in the next three months had fallen to -92% - meaning 92% more surveyors thought sales would fall than would rise - a lower figure than in the depth of the financial crisis and the lowest since the metric was first recorded in 1998. New enquiries, new vendor instructions and newly agreed sales all fell to record lows. Read more on the Housing Today website.

https://www.housingtoday.co.uk/news/house-sales-fall-at-fastest-ever-rate-says-rics/5105484.article

Budget Fails Tenants Say Landlords

Tenants will continue to face a rental supply crisis as the Chancellor’s Budget has today failed to boost the supply of privately rented homes. Following years of tax hikes on the sector, organisations including the Royal Institution of Chartered Surveyors, Hamptons International, Zoopla and ARLA Propertymark have warned that private sector rents are set to rise as the demand for such homes outstrips supply. The Residential Landlords Association and the National Landlords Association warn that this only makes it harder for tenants to save for a home of their own. Read more on the NLA website

https://landlords.org.uk/news-campaigns/news/budget-fails-tenants-say-landlords

Demand Grows For UK Housing

Sales of new homes increased for a third consecutive month across the United Kingdom, as has buyer demand and new instructions, according to the February 2020 RICS UK Residential Market Survey. The February 2020 UK Residential Market Survey revealed a net balance of +20% of respondents saw an increase in new buyer enquiries over the month, the third period of growth in a row. In addition, experts are forecasting a better sales outlook for the rest of the year, with +61% of survey participants saying they expect more homes to be sold as the year progresses. New homes coming onto the sales market also nudged up for a third straight month. Read more on the RICS website.

https://www.rics.org/uk/news-insight/latest-news/press-releases/demand-grows-for-uk-housing/

Activity Continues To Grow In UK Housing Market

Renewed optimism from buyers and sellers saw a continued pick-up in sales activity across the UK housing market, according to the January 2020 RICS UK Residential Market Survey, with both the number of agreed sales and new homes being listed for sale improving over the month.  At the national level, the number of homes being listed for sale increased in January. January also saw an increase in the number of people looking to buy as new buyer enquiries rose to a net balance of +23% from +19% in December. As well as this, agreed sales rose for a second month in a row (a net balance of +21%). Read more on the RICS website.

https://www.rics.org/uk/news-insight/latest-news/press-releases/refreshed-optimism-as-activity-continues-to-grow-in-uk-housing-market/

Landlords Warn Of ‘Sharp Drop’ In Private Rental Supply

Landlords are warning of a crisis in the private rental market, as new figures show a sharp drop in supply over the last year. According to the latest Residential Market Survey by the Royal Institution for Chartered Surveyors, last month saw a net balance of minus 29% of surveyors reporting a fall in landlord instructions – twice the negative rating in November 2018. With tenant demand continuing to increase, RICS predicts that this will lead to rent increases of around 2% over the next year and around 3% a year over the next five years. Read more on 24housing.

https://www.24housing.co.uk/news/landlords-warn-of-sharp-drop-in-private-rental-supply/

Brexit Uncertainty Constrains Construction Sector Optimism

The uncertain outlook for the UK economy has led to reduced optimism, according to the results of the Q3 2019 RICS UK Construction and Infrastructure Market Survey. With anecdotal evidence from respondents suggests that the housing market slowdown, coupled with unrelenting Brexit and political uncertainty, is weighing on investment decisions. The survey results point to a notable deceleration in workloads, this quarter, with only a net balance of +10% reporting an increase in total workloads, down on average from +33% between 2013 and Q2 2016. Read more on the RICS website.

https://www.rics.org/uk/news-insight/latest-news/press-releases/brexit-construction/

Tenants Face Rent Increase ‘Acceleration’ As PRS Demand Outstrips Supply

Tenants face an “acceleration” in rent increases over the next five years as a result of the demand for private rented housing outstripping supply. The Royal Institution for Chartered Surveyors (RICS) warns that, in the lettings market, the latest set of results – which form a part of non-seasonally adjusted series – are indicative of demand from prospective tenants rising firmly for an eighth month in a row. That’s a net balance of +22%. Alongside this, RICS says landlord instructions remain in decline. Read more on 24housing.

https://www.24housing.co.uk/news/tenants-face-rent-increase-acceleration-as-prs-demand-outstrips-supply/

Fewest UK Homes Being Put On Sale Since 2016 As Brexit Nears

Britons are holding off from trying to sell their homes due to uncertainty about when and how Britain will leave the European Union, according to a survey which adds to signs of a slowdown in the housing market. The Royal Institution of Chartered Surveyors (RICS) said new sales instructions fell last month at the fastest pace since June 2016, when Britain voted to leave the EU in a referendum. New buyer inquiries were down by the most since April, and sales fell by the most since February. Read more on the Reuters website.

https://uk.reuters.com/article/uk-britain-economy-houseprices/fewest-uk-homes-being-put-on-sale-since-2016-as-brexit-nears-rics-idUKKBN1WO2WA

Brexit Casts Shadow Over UK Housing Market Outlook

Brexit uncertainty is likely to press down on house prices and the volume of property sales over the next three months, a closely watched industry survey shows. The Royal Institution of Chartered Surveyors said its headline price balance for August rose to -4 from -9 in July, bucking economists’ average expectation in a Reuters poll for a further decline to -11. But RICS members’ outlook for the next three months - during which period Britain is scheduled to leave the European Union - grew darker. Sales volumes expectations for the next three months dropped to -23 from -4, while short-term expectations for prices declined to -24 from -13. Read more on the Reuters website.

https://uk.reuters.com/article/uk-britain-economy-houseprices/brexit-casts-shadow-over-uk-housing-market-outlook-rics-idUKKCN1VW2W1

Tenants Hit Hardest By Focus On Home Ownership

Tenants in private rented housing are bearing the brunt of the Government’s focus on boosting home ownership at the expense of the rental market. According to the latest figures from the Royal Institution of Chartered Surveyors (RICS), a fall in the supply of private rented housing whilst demand from prospective tenants increases is “likely to squeeze rents higher.” Tenant demand has picked up despite the Government’s efforts to boost homeownership and RICS notes that many respondents to its latest residential market survey saw a rise in the number of enquiries from new home buyers in July. Read more on the RLA website.

https://news.rla.org.uk/tenants-hit-hardest-by-focus-on-home-ownership/

UK House Prices And Sales ‘Losing Momentum’

House prices and sales are “flatlining” amid Brexit uncertainty, according to a new Royal Institution of Chartered Surveyors (RICS) report. 69% of property professionals surveyed said sale prices were lower than asking prices for homes marketed at more than £1m. However, the report revealed that prices in Scotland, Wales, and Northern Ireland were rising at a “solid pace”. Read more on 24housing.

https://www.24housing.co.uk/news/uk-house-prices-and-sales-losing-momentum/