The future of the property market depends on which reports you believe!! There are those that have a ‘glass half full’ approach but equally there are the usual prophets of doom.
According to the Royal Institution of Chartered Surveyors (RICS), sales activity is increasing in the UK’s residential property market but experts forecast a slow start to 2017 due to a lack of stock.
New buyer interest has increased in November for the third month in a row but remains low.
RICS identified supply as one of the main issues and the growth in sales activity, albeit only modest, alongside a lack of new instructions, has led to a further decline in homes for sale. A lot of commentary suggests a rather slow start to 2017 simply due to the lack of new properties coming to the market for sale.
As stock continues to shrink, prices increase. For the second month in a row, the highest price increases were located in the West Midlands and North West – excellent news for us in South Cheshire! The outlook overall is positive for all of the UK, but how big the actual price increase is, depends on the region.
When it comes to London, contributors are less confident over the coming year, with larger properties showing the slowest price growth.
“A key issue for the housing market is the slowdown in transaction activity since the spring, which is clearly being reflected in the RICS agreed sales data as well as in official figures,” said Simon Rubinsohn, RICS chief economist.
“Although there are some signs that the numbers may begin to edge upwards in the new year, the combination of macro uncertainty, the ongoing supply shortfall, with stock levels around historic lows, and the myriad of tax changes impacting on buyers suggest that any pick-up in activity will be relatively modest,” he pointed out.
So we wait patiently and see how the New Year pans out but one thing we know for sure is that we have a fantastic team of residential property lawyers, ready and raring to get you moving in 2017! Click here for contact details.