The UK’s most vulnerable tenants are being pushed out of the private rental market, according to the latest RICS Residential Market Survey.
The February 2017 RICS UK Residential Market Survey shows key activity indicators in the sales market remain subdued with transaction volumes broadly unchanged for the third month in succession. New buyer enquiries were again flat and have now failed to see any meaningful growth since November 2016. Near term expectations remain positive but point to a relatively modest rise in activity in the months to come.
The headline price balance came in at +24% in February, unchanged from a downwardly revised figure of +24% in January. Respondents in most regions reported an increase in prices with the strongest growth in the North West of England and notable improvements in Northern Ireland as well. London and the North East of England remain the exceptions with momentum in the former deteriorating for the fourth consecutive month. In fact, surveyors have now reported a fall rather than a rise in London prices for a full year (with most of this activity concentrated in the inner boroughs).
Having moved into positive territory last September, new buyer enquires seem to have gradually lost steam over the past few months ending February on a flat reading. At a regional level, momentum remains strongest in the South West and weakest in the East Midlands.
Meanwhile, the deterioration in the supply of new listings reported in January was confirmed once again this month with 14% more respondents reporting a decline in instructions relative to the prior period’s 12%. The pace at which new instructions are dwindling appears to be particularly acute in the North West of England and West Midlands.
Full Report: RICS UK February Residential Survey