RICS Residential Market Update | July 2021
The RICS July 2021 Residential Market survey shows a softer month for new activity, following on from the preceding months of manic movement on the market, partly fuelled by the stamp duty holiday which ended on 30th June. However, the lack of stock continues to underpin house price inflation.
New buyer enquiries have fallen back, possibly due to a return to more normal working, with less people working from home and seeking out changes. It is also likely that potential buyers are put off by the lack of supply in the market.
On the supply side, there continues to be an abject lack of new instructions, something that has been a characteristic of the market for many months now.
RICS surveyors and estate agents who contributed to the survey anticipate that house prices will continue to rise at a solid rate for the next twelve months.
It is surprising that the rate of prices rises in recent months has not encouraged more vendors into the market, but one issue we have found is few opportunities for them to purchase new property, whether trading up or downsizing. Many of our recent enquiries have related to vacant houses following the death of the owners or former let houses, so there is no chain. When we have brought properties to the market demand has generally been overwhelming.
It’s a similar picture on the rental side with supply continuing to fall back. This remains a symptom of landlords objecting to increased compliance and tax, alongside strong capital values. We have had more landlords looking to sell houses than buy more in recent months. As a result, demand is strong for well presented rental houses and rents continue to rise. Whilst this is good for landlords, we do have concerns about affordability. Clearly the market is different than for sale as we need to ensure that tenants can make their rent payments ongoing, it’s not a one-off transaction, so those stretching themselves may struggle in the future. Luckily landlords who do want to remain active in the market can access reasonably cheap funds.
Our agency and lettings arm, Morrison Property Services is available to give potential vendors and landlords a free no obligation appraisal. We have demand for all types of property, both rural and more urban.
Our valuation and professional services business, Oakwood Valuation Surveyors is well placed to provide formal valuation reports for all purposes, such as taxation, purchase, probate, matrimonial and our Registered Valuers cover a wide range of property type in the North West and North Wales.
Issued 16th July 2021
A G Bowcock MRICS MRAC
Managing Director, Oakwood Valuation Surveyors Ltd