Sales activity in the UK residential market is increasing, but a slow start to 2017 is expected due to a lack of stock.
The November RICS Residential Market Survey shows a small increase in new buyer enquiries for the third consecutive month, with near term expectations pointing to a continued, albeit relatively modest, rise in activity over the months to come.
The headline RICS price balance came in at 30% in November, it’s highest reading since April, with more respondents in most areas seeing some increase rather than a decrease. For the second consecutive month, the strongest growth was reported in the West Midlands and North West of England. In London, Wales and the North East of England, slightly more surveyors reported a fall rather than a rise in prices. However, in London (this data tends to better reflect activity in the inner boroughs rather than the outer zones) the downward momentum looks to have eased significantly relative to previous months.
Demand at the aggregate level increased modestly once again during the month with 13% more surveyors reporting a rise in new buyer enquiries rather than a fall. Indeed enquiries increased in most parts of the UK in November.
On the supply side of the market, conditions remained broadly unchanged relative to October with an increase in instructions in some parts offsetting falls elsewhere. This led to a flat supply picture at the headline level with the net balance of new instructions coming in at 0%.
Full report: RICS UK November Residential Survey