RICS Residential Market Update | August 2021
It’s time to look at the latest RICS Residential Property Market Survey, which is for August. Not surprisingly the survey shows a softening of market activity, with the market perhaps taking a breather after months of frenzied action. Previous reports noted the surge in transactions brought about, at least in part, by the temporary stamp duty holiday.
Nationally new buyer enquiries fell in the month, along with the number of transactions. However, agents envisage transaction activity rising again in the coming months. Supply continues to be a factor at the present time, with new instructions being in negative territory for eight out of the last nine months. Agents’ stock remains at low levels. With this backdrop agents envisage prices continuing to rise over coming months.
Our experience mirrors what the survey says. When we launch new property for sale, we are generally swamped with interest. Realistically only those who are in a position to proceed quickly can be considered, this means those in a chain or not yet sold struggle to purchase. We have found that some vendors themselves find it hard to move due to a shortage of supply and overwhelming demand, sometimes forcing withdrawal of properties from the market.
Whilst mortgage applications are time consuming, interest rates remain very low and no doubt this is influencing buyers. It is surprising that the prices rises have not drawn out more property for sale, but we await the market finding an equilibrium in the not too distant future.
On the lettings side, tenant demand continues as landlords withdraw from the market. Rents are expected to continue to rise. We have found more landlords seeking to sell property than buy, with the recent local price rises being the key drivers. This is making life very difficult for tenants. Unless tenants have to move (for work, etc.) the majority are staying out as there is little stock available for them; this is despite removal of agents’ fees to make moving cheaper.
The Government policy on rentals is contributing to the supply with more cost burdens falling to landlords. Not surprisingly this is leading to rent increases due to shortage of supply.
At Oakwood we have a database of prospective buyers and tenants. We offer vendors and landlords a free no obligation market appraisal. The business is managed by very experienced chartered surveyors supported by a team who all have local roots. We understand property and offer a first-class service. Call us on 0161 941 4228.