Long Term Market Outlook – RICS Survey

The war in the Middle East appears to have tempered the property market in the short-term but the long term market outlook remains broadly positive, according to today’s RICS Residential Market Survey.

The Royal Institution of Chartered Surveyors’ (RICS) is one of the world’s leading professional bodies for the property industry and compiles the sentiment of chartered surveyors and estate agents across the UK.

Some contributors to the report have indicated an encouraging start to the year’s level of activity but the recent war in the Middle East has meant that short-term expectations have ‘taken a setback’.

There has been a net balance of -26% in new buyer’s enquiries in February, down from -15% in January.  In addition, sales agreed have shown a net balance of -12% (slightly down on -9% in January).

However, a net balance of +17% of survey respondents still anticipate a pick up in sales activity, albeit this is noticeably down from the +35% positivity in the previous iteration of this report.

The flow of new properties coming to the market has remained steady with the report showing +2% with new appraisal levels in line with that seen twelve months ago.

Long Term Market Outlook – House Prices

Regional house price pressures are reflected with London at a net -40%, South East -24% and East Anglia -26% seeing a greater degree of downward pressure compared to the net national average of -12%. Northern Ireland and Scotland are continuing to see prices rise with the North West of England also bucking the national picture.

Longer term, +33% contributors foresee house prices edging higher, although down from +43% last month.

We will keep you posted on the long term market outlook but do contact us if you would like the latest on how the funding markets are being affected.  The Spring period is traditionally a time when, as the sun starts to shine and temperatures rise, that buyers and sellers start the process of coming to the property market.  We will watch with interest how activity levels progress.

Developer Money Market is a specialist in property development and investment funding across the UK.  Call us today on 01244 953 360 or email us here.

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