RICS Residential Market Update | May 2021
It is not surprising that the RICS Market report for May 2021 shows a widening disparity between demand and supply within the housing market which is forcing an upward pressure on house prices. In north Cheshire alone, property sales have been beyond buoyant for the past few months with some houses rising by noticeable percentages in just weeks.
Across the whole of the UK in the month of May there was a notable increase of new buyer enquiries, making this the fourth consecutive month of positive readings.
In line with this, newly agreed sales rose over the month signalling a continued strong momentum for the few months ahead. This may soften soon, however, as the Stamp Duty holiday begins to be tapered out into September.
House prices have intensified up to now and looking ahead 12 months they are expected to remain elevated. New instructions have become increasingly scarce leaving the gap between new buyer enquires and new instructions at it widest since November 2013.
Over to the lettings market, tenant demand growth remains firm across the country with a view to rents picking up over the near term. Landlord’s instructions remain broadly flat which is to be expected particularly with the Government’s recent focus on compliance and heavy regulation of the sector.
The current state of the market clearly can’t be sustainable with all the problems it is causing. It will no doubt end, but let’s hope it’s a soft landing.
On a positive note, it has now been a successful six months since Oakwood purchased Morrison Property Services and we have hopefully managed to marry the two businesses. We are planning to host some exciting events in the near future for our clients and contacts so be sure to keep your eyes peeled on our socials.